CALGARY, AB–(Marketwired – March 01, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce that it has closed the previously announced agreement (January 24, 2017) to acquire oil & gas assets, effective January 1, 2017, from a private oil and gas company (the “Acquisition“) with the issuance of three million three hundred and fifty thousand shares of Point Loma.
- The assets are concentrated in the west central area of Alberta contiguous to Point Loma’s existing area of focus;
- Production of approximately 410 boe/d, comprised of 95 percent natural gas bringing current Point Loma production to approximately 900boe/d (30 percent oil &NGL, 70 percent natural gas);
- Approximately 105,000 net acres of land split between Judy Creek which is contiguous to Point Loma’s Paddle River area and Thornbury which is a shallow gas area in NE Alberta;
- The assets were paid with the issuance of 3,350,000 common shares of Point Loma that was reduced from an earlier announced amount of 4,000,000 shares due to minor closing adjustments;
- The acquired properties have additional behind pipe production of approximately 450 boe/d; and
- As previously announced in Point Loma’s 2016 year end reserve announcement the pro-forma estimated net present value of the combined Corporation and acquisitions, as of December 31, 2016, is $36.5 million Cdn on proved and probable reserves and $27.6 million Cdn on total proved reserves discounted at 10 percent.
“This acquisition will continue Point Loma’s growth in size and strength as a junior oil and gas company. We continue to seek quality assets that will extend our core focus area at favorable acquisition metrics.” said Terry Meek, President and CEO of Point Loma. “The expansion of our focus area will continue to build shareholder value as Point Loma develops the Mannville trend in west central Alberta.”
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.