HOUSTON, Aug. 03, 2018 (GLOBE NEWSWIRE) — Greenfields Petroleum Corporation (the “Company” or “Greenfields”) (TSX VENTURE: GNF), an independent exploration and production company holding an 80% interest in certain producing assets in Azerbaijan, is pleased to announce that it has reached an agreement to extend the maturity of certain loan agreements (the “Additional Loan Agreements”) until December 31, 2018. The Additional Loan Agreements, contracted in September 2016 with a consortium of lenders, consist of principal of US$3.025 million and bear interest at the rate of 12% per annum.
The consortium of lenders includes Michael Hibberd, Norman Benson and John Harkins, who funded principal in the amount of US$420,000, and who are ‘related parties’ of the Company pursuant to Multilateral Instrument 61-101 (“MI 61-101”) by virtue of being directors or senior officers of the Company. As such, the amendment to the Additional Loan Agreements is considered a ‘related party transaction’ pursuant to MI 61-101 and requires the Company to obtain, in the absence of exemptions, a formal valuation for, and minority shareholder approval of, the ‘related party transaction’. The company is relying on section 5.5(b) of MI 61-101 as an exemption from the formal valuation requirements of MI 61-101 on the basis that no securities of the Company are listed on a specified market set out in such section. The Company is also relying on section 5.7(f) of MI 61-101 as an exemption from minority shareholder approval requirements set out in MI 61-101 on the basis that the ‘related party transaction’ is a loan to the Company with no equity or voting component.
Gross production volumes for the second quarter 2018 with respect to the offshore block known as the Bahar Project (the “Bahar Project”) averaged 4,231 boe/d, a 14% increase in comparison to the first quarter 2018 (3,720 boe/d).
The positive production additions in 2018 continue to be attributable to recompletion success in the Gum Deniz Oil Field and the Bahar Gas Field.
“The Company is very appreciative of the support provided by our lenders during 2018 as we continue to restore and stabilize production while maintaining operating costs well under forecast,” said John W. Harkins, CEO.
About Greenfields Petroleum Corporation
Greenfields is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan. The Company is the sole owner of Bahar Energy Limited (“BEL”), a venture with 80% participating interest in the Exploration, Rehabilitation, Development and Production Sharing Agreement with the State Oil Company of Azerbaijan and SOCAR Oil Affiliate, in respect of the offshore block known as the Bahar Project, which includes the Bahar Gas Field and the Gum Deniz Oil Field. BEL operates the Bahar Project through its wholly owned subsidiary Bahar Energy Operating Corporation Limited. More information about the Company may be obtained on the Greenfields’ website at www.greenfields-petroleum.com.