September 30, 2021 – Calgary, Alberta – Paleo Resources, Inc. (“Paleo” or the “Corporation”) (TSXV:PRE) (OTC:PRIEF) announces that it received an order from the Alberta Securities Commission dated July 5, 2021 granting the full revocation of the cease trade order previously issued on May 6, 2021. Upon the issuance of the cease trade order, the common shares of Paleo were suspended from trading on the TSX Venture Exchange (“TSXV”). The common shares will reinstate trading on the TSXV at the opening of trading on Monday, October 4, 2021.
Paleo’s primary focus remains development of its oil and gas assets. Due to the continuing difficulties associated with raising financing for these projects, Paleo has continued to build out its digital finance unit, EF Resources, which provides the platform to access retail capital markets more efficiently, and without the significant dilution that accompany common share offerings.
In connection with the reinstatement of trading, Paleo provides the following operational updates:
Paleo Resources Oil & Gas Update
Paleo has secured approval from the Alberta Energy Regulator to install and operate production facilities necessary to produce its Joffre Leduc D-3B Pool 103/9-22-39-26 well. Paleo has installed the equipment necessary to commence curtailed production of the well and actually commenced production this month. The well is naturally flowing at a rate of 45-60 bbls fluid per day, with an 85%-88% oil cut. Paleo plans to install the remainder of the necessary equipment, including permanent flare facilities, before year end, that may allow the well and one or more additional field wells to be produced at a higher rate.
With respect to Paleo’s Polk County, Texas natural gas properties, Paleo is pleased to report that its Ranger A #1 well continues to produce commercially. Paleo’s Jones #1 and Stampede A #1 wells are still waiting on a gas pipeline connection to an Energy Transfer pipeline. However, the gathering lines from the wells to the proposed pipeline connection are over 90% complete.
Paleo is pleased to report that its indirect US subsidiary, EnergyFunders LLC, has launched EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC. Both of these special purpose investment vehicles seek to manage accredited investor capital in oil and gas project investments managed by the EnergyFunders management team though a wholly owned limited liability company manager entity. EnergyFunders LLC does not own an equity interest in the Funds but will earn a fund origination fee that varies between one percent (1%) and five percent (5%) of the investment amount, and an annual fee of two percent (2%) of the assets under management (AUM) in connection with these offerings.
EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC is expected to provide capital to or invest in one or more Paleo oil and gas projects, but no definitive terms of such participation have been reached at this time. In additional to traditional oil and gas well drilling projects, EnergyFunders is also assessing multiple projects that involve using stranded natural gas to power electricity generation for use in remote wellsite bitcoin mining.
EnergyFunders Yield Fund I, LLC is targeting a US$25 million capital raise and EnergyFunders Yield Fund I GP, LLC is targeting a US$10 million capital raise. Both entities commenced their capital campaigns in summer 2021, and continue to accept investor capital at this time. For more information on the structure and status of EnergyFunders LLC, its management team, and EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC, please review:
EnergyFunders LLC Management Team
EnergyFunders LLC Digital Platform Home Page
tZERO Partners With EnergyFunders to Digitize & Trade $25 Million of Securities in Its New Yield Fund I
The Field Genie, Inc. Collaboration with EnergyFunders
Paleo is pleased to report that per the terms of the previously announced Field Genie transaction, Piyush Prakash continues to serve as CTO for Paleo. Field Genie has and continues to innovate around the EnergyFunders financial technology platform as it makes improvements and updates to the platform. Field Genie continues to strategically innovate and develop software centered around businesses in the retail and transportation sectors as it looks to expand its equity interests in other businesses. Field Genie is an innovation driven technology incubator, with deep experience in AI, IoT, Blockchain and Web 3.0 application development.
The Corporation has paid seven (7) of the twelve (12) installment payments to date, totaling US $291,666.69 to Field Genie, and the Corporation remains in good standing under the Field Genie contract.
Upon making each of the twelve (12) installment payments, the Corporation earns and receives a proportionate share of 50,000 common shares of Field Genie, Inc., which is 4,166.67 shares per installment. Accordingly, the Corporation has now earned 7/12 of 50,000 common shares of Field Genie (50,000 shares representing 5% of Field Genie, Inc.), or approximately 29,167 common shares to date.
Update as to Shares for Debt Transaction
As announced on April 8, 2021, the holders of the Corporation’s outstanding 2019 debentures provided notice to the Corporation to repurchase all amounts outstanding under the 2019 debentures in the principal amount of CDN$3,085,218.75. Paleo intends to settle a total of CDN$2,675,169.10 of such indebtedness through the issuance of an aggregate of 89,172,303 common shares of the Corporation at a deemed price of CDN$0.03 per share, subject to the approval of the TSXV. No new insider or control person will be created as a result of the shares for debt transaction. Closing of the shares for debt transaction was delayed due to the cease trade order. Paleo expects to complete the transaction within fifteen (15) business days of reinstatement of trading.
Paleo Adds 6th Board Member
At Paleo’s 2021 annual general and special shareholders meeting held on July 9, 2021, the shareholders re-elected the current five directors and also elected Mr. Navneet (Nav) Behl to the Board of Directors of Paleo. Mr. Behl has over 27 years of experience in the petroleum industry. He was a key member of EOG’s unconventional Barnett Shale team, which developed modern shale completion techniques that ultimately kicked off the U.S. shale revolution.
After successfully leading the startup of 3 unconventional plays, Nav then started up his own exploration and production company – OilRox Resources, in 2019. Nav holds a B.S. from the Indian School of Mines in Petroleum Engineering, an M.S. from the University of Texas at Austin in Petroleum Engineering, and an executive MBA from the MIT Sloan School of Business.
Paleo Resources, Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in San Antonio, Texas. The Corporation’s common shares are listed on the TSX Venture Exchange under the trading symbol “PRE” and on the OTCQB as “PRIEF”.