Calgary, Alberta (FSCwire) – Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to announce that it has closed the previously announced acquisition of a private oil and gas company (the “Acquisition”). The purchase price of the Acquisition was $1,557,600.00 and was paid with the issuance of 5,192,000 common shares of the Corporation.
- Point Loma has acquired a private oil and gas company with assets focused in East Central Alberta at a deemed share price of $0.30 per share.
- The acquired production is approximately 130 boe/d, comprised of approximately 30 percent oil and ngl’s.
- The Acquisition has estimated working capital at closing of $310,000.
- Natural gas production is downstream of AECO and receives a premium price to Alberta sales.
- The Acquisition has identified opportunities for future oil exploitation and exploration.
- The Acquisition’s annualized operating income is estimated at $450,000 to $500,000.
- Included are 15,000 net acres at an average working interest of approximately 40 percent.
- The Acquisition has a liability management ratio (“LMR”) of 5.9 in Alberta, comprised of deemed assets of $2.7 million and deemed liabilities of $0.5 million.
- At the closing of the Acquisition Point Loma has 60,322,773 common shares outstanding.
The Acquisition is anticipated to close in June 2018 subject to regulatory approvals. Point Loma plans to amalgamate the Acquisition post closing. Point Loma plans to update the Acquisition reserves at year end.
About Point Loma
Point Loma is a public oil and gas exploration and development company focused on conventional oil and gas reservoirs in west central Alberta. The Company controls over 150,000 net acres (230 net sections) and has a deep inventory of opportunities in the Mannville, Nordegg, Banff and Duvernay Shale formations. 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, 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.