VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 9, 2017) – Pulse Oil Corp. (“Pulse” or the “Company”) (TSX VENTURE:PUL) announces that Pulse and Crimson Energy Ltd (“Crimson”) have agreed to extend the terms of the agreement (the “Agreement”) between Pulse’s subsidiary and Crimson to insure the committed work programme takes optimal advantage of the Company’s funding plans, and maximizes the value of the Bigoray Assets, located in Alberta.
Pursuant to the Agreement, Pulse’s subsidiary acquired a 50% interest in the Bigoray Assets and included an option to acquire Crimson’s entire interest in the Assets, for a price of $4.25 million. In addition to the initial payment of $750,000 to Crimson, Pulse’s subsidiary committed to fund the first $3 million in capital costs allocated mainly to low risk well re-activations within the Bigoray project area to enhance production and cashflows from the area.
The material amendments to the terms of the Agreement are detailed in the table below:
|Details||Original Terms (Prior to Going Public via the “Pulse Oil” TSX-V
|a.||Capital cost commitment for
50% interest in Bigoray Assets
|$3 million by March 31, 2017||$250,000 by March 20, 2017|
|$1,000,000 by June 30, 2017|
|$1,750,000 by September 29, 2017|
|b.||Option to purchase remaining
50% of the Bigoray Assets
|Pay an additional $4.25 million by April 30, 2017||Pay $4.25 million by October 20, 2017 (post completion of the planned well
Garth Johnson, CEO of Pulse Oil Corp. stated, “As we begin to grow Pulse through a combination of smart acquisitions and technically supported capital investments, we appreciate the opportunity to work with Crimson to amend the terms of our agreement. Having recently been accepted onto the TSX Venture Exchange (March 7, 2017), we felt it would be beneficial to adjust the timelines to fully plan and fund the development of the Bigoray assets. We are excited to get to work and we look forward to growth of production and reserves via well re-activations, and proven enhanced oil recovery processes. Our initial low-risk capital program is forecast to generate significant value at Bigoray. We appreciate Crimson working with us on the revised terms and we look forward to executing on the planned well reactivation program in the field.”
More data and videos related to the Bigoray Assets are available at Pulse’s website at www.pulseoilcorp.com.
About Pulse Oil Corp.
Pulse is a Canadian company incorporated under the Business Corporation Act of Alberta and has plans to become a leading oil and gas company. Pulse will focus on acquiring affordable, small to medium sized proven oil and gas assets with significant upside while achieving further growth through low-risk, technically diligent drilling utilizing proven horizontal drilling technology and enhanced oil recovery techniques to grow reserves and shareholder value.