CALGARY, AB–(Marketwired – June 21, 2017) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma“) is pleased to announce the second tranche investment with Evenergy Company Limited (“Evenergy“) to acquire 4,630,122 common shares of Point Loma for $2,222,459 representing a purchase price of $0.48 per share (the “Investment“) has now been completed. In total, Evenergy has now invested $4,020,000 in exchange for 8,375,000 common shares of Point Loma.
- With the closing of the second tranche, Point Loma now has 42,078,907 common shares outstanding;
- Point Loma will utilize the funds to accelerate drilling and facilities plans previously announced; and
- Evenergy will have the right to participate in future equity issuances of the Corporation to maintain its pro rata interest on the terms set out in the Investment agreement.
With the closing of this Investment agreement Point Loma has attracted another strategic investor that will allow Point Loma to accelerate currently identified opportunities and provides additional capital options to pursue opportunities in the core focus area of west central Alberta. Point Loma has been able to efficiently acquire certain strategic assets for accretive terms in the region and the Evenergy transaction injects capital to further accelerate the Corporation’s drilling program and acquisition and exploitation opportunities through the remainder of 2017.
“Point Loma is excited to add to our capital programs in 2017 with this addition of capital at a key time in our growth cycle,” said Terry Meek, President and CEO of Point Loma.
GMP Securities LP and Mackie Research Capital Corporation have acted as the respective financial and strategic advisors to Point Loma in regards to this investment transaction.
Point Loma is currently producing approximately 700 boe/d (post-closing of the Salt Bush joint venture). The Corporation anticipates the acceleration of its development plan and the increase of production with the deployment of the proceeds through certain identified acquisitions, re-activations, development drilling and new pool drilling opportunities.
Appointment of New Director
Point Loma is very pleased to announce that Jianjun Cui has been appointed to the Corporation’s Board of Directors. Mr. Cui is a founding director of Dayou Energy Ltd., the parent company of Evenergy, which now holds approximately 19.9% of the Corporation’s common shares. Mr. Cui has more than 20 years of senior management experience including Senior Vice President of a Hong Kong listed company, Vice President of Mergers and Acquisitions for Sinochem Petroleum, Country Manager to Colombia and General Manager of Asset Management for Sinochem Petroleum. Mr. Cui holds a PhD in Geophysics and has been a visiting professor to the University of Calgary for one year. It is anticipated that Mr. Cui will join the Reserves and Corporate Governance and Compensation committees of Point Loma.
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.
Evenergy is a long term strategic investor targeting high quality oil and gas assets. Evenergy is a Hong Kong registered company, a subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG distribution and retail companies in China.