Calgary, Alberta – Petro Viking Energy Inc. (“Petro Viking” or the “Company”) (CNSX:VIK.CN) (CNSX:VIK.V.CN) is pleased to provide a Corporate update on the closing of the asset purchase of 100% of Avila Energy’s interests in 53,835 Acres, 43,935 Acres (Net), of mineral rights, associated wells, pipelines and facilities for $50,664,000.
As part of the previously announced binding agreement for the acquisition on June 14th, 2021, after waiving all further due diligence, Leonard Van Betuw accepted on July 14th 2021 the appointment to become a Director of the Corporation in addition to President and Chief Executive Officer.
Under Mr. Van Betuw’s guidance the Company continues to advance its plans for the full integration of personal and operations in the 3rd quarter in preparation of the closing of the acquisition as previously announced to occur on or before October 31, 2021, and remains only subject to the execution of all related applications and approvals necessary as would be customary within the industry in parallel to submission of all necessary applications and approvals including shareholders and the Canadian Stock Exchange.
As previously announced, the Purchase Price for the Acquisition is being satisfied by way of the issuance of 40,440,000 Class A common shares (the “Common Shares”) at $0.60 per share and 30,000,000 convertible preferred shares (the “Convertible Shares”) convertible at a price of $0.80 per share. The Convertible Shares shall have a term of five years (5) and earn an accruing annual dividend at a rate of two percent (2%), payable upon conversion. The Conversion of the Convertible Shares at the election of the holder can only occur after one of three milestones has been achieved: a) the Company exceeds the production rate of 3,000 boe/d, b) the Common Shares trade at a volume weighted average price (VWAP) of more than $1.00 per share for twenty (20) consecutive business days or c) the second year anniversary since the issuance of the Common Shares has occurred. At maturity upon the fifth anniversary of their issuance, the Convertible Shares shall automatically be redeemed on a 1:1 basis along with any accrued dividends by the issuance of Common shares.
Leonard Van Betuw, newly appointed President and CEO commented, “I am very pleased with the progress we have made in recent weeks and the talented team that in the future; upon the completion of the name change will continue to trade under the symbol VIK and be known as Avila Energy. We look forward to receiving the upcoming approval of the Shareholders of Petro Viking Energy Inc. in advance of the closing of the Acquisition.”
“Currently the industry is experiencing mixed signals; the tailwinds of strong commodity prices and the headwinds of moral obligations to humanity. The Company’s contribution is to be a responsible supplier of energy that fuels economic growth in a manner that provides an unwavering path forward that addresses head-on the extensive transitionary pressures to adapt to ever-changing social policies.”
Mr. Van Betuw stated. “Avila Energy’s team understands these obligations, embracing both the challenges and the opportunities that are a result of these forces; with a common goal of being recognized for its sustainable growth as an integrated low cost Carbon Neutral Energy Producer. The Company intends to achieve this by continuing to build from the foundation it has formed to date with future growth coming through the implementation of proven techniques within its operations. The fully integrated application of a combination of proven Conventional Production, Power Generation, Carbon Capture, Processing and CO2 Sequestration techniques within its expanding land based of historically defined Petroleum and Natural Gas Reserves. In General a supplier of Energy that is known for making economical investments in the energy sector that remains in demand and recognized for its association with Best Practice’s.”