CALGARY, AB – Perisson Petroleum Corp. (the ‘Company‘ or ‘Perisson‘) (TSXV:POG) is pleased to announce that it has exercised several right of first refusal options (the ‘ROFR Interest‘), resulting from the sale of property in the area by a working interest partner. The closing of the sale is scheduled for later today, June 8, 2021.
Based on Perisson’s reserve report with an effective date of January 1, 2020, prepared by an independent reserve evaluator in accordance with the COGE Handbook, the ROFR Interest will increase 2P reserves to 1,306,500 BOE with an NPV10 valuation of $10,703,400. The ROFR Interests are estimated to increase production by approximately 19%. In addition, the Company is planning to reactivate several of the ROFR Interest wells shut-in due to low oil prices during 2020.
Since June 2020, Perisson has issued convertible secured debentures Series A, B, C, D (the ‘Debenture Series‘) in the aggregate principal amount of approximately CAD $3,292,809. The outstanding principal and accrued but unpaid interest are convertible by the holders into common shares of Perisson at a conversion price of CAD $0.20 per share at any time during the term of the Debenture Series. Each Debenture Series is for five years, earning 10% interest per year with up to a 10% set-up and due diligence fee. In addition, the Company is continuing to work with its investor group and anticipates the issue of additional debenture series to fund the further acquisition of more significant oil and gas properties.
Common shares issued in connection with the conversion of the debentures will be subject to a four-month hold period from the time of the debenture issue date, and each tranche of the Debenture Series is subject to the TSX Venture Exchange’s approval.