Calgary, Alberta – Blacksteel Energy Inc. (“Blacksteel” or the “Corporation“) is pleased to announce that it has signed an agreement (the “Definitive Agreement“) for the acquisition of all of the shares of Drakkar Energy Ltd. (“Drakkar“) and has completed an additional tranche of its private placement financing (the “Financing“) of common and flow through shares.
Signing of Definitive Agreement with Drakkar Energy Ltd.
The Definitive Agreement involves a three-cornered amalgamation of Blacksteel, Drakkar and 2488908 Alberta Inc., a wholly owned subsidiary of Blacksteel. At the time of the amalgamation the resultant entity will be known as Blacksteel Energy Inc.
The transaction between Blacksteel and Drakkar (the “Transaction“) allows for the consolidation of 100% of the Girouxville producing oil and gas asset under ownership and operatorship of Blacksteel. Under the terms of the Transaction, Blacksteel will issue a total of 10 million common shares to Drakkar security holders, vendors and suppliers. Drakkar has scheduled a shareholder meeting to approve the Transaction on March 1, 2023.
Private Placement
Blacksteel is pleased to announce the issuance of 5,150,000 common shares at $0.08 per share for gross proceeds of $412,000 and 1,700,000 flow-through shares at a price of $0.09 per share for gross proceeds of $153,000. Blacksteel anticipates additional closings in the Financing exceeding $1,000,000 over the course of Q1 and Q2, 2023. Please contact the Corporation if you have any interest in participating in the Financing.
After completion of the most recent closings under the Financing, Blacksteel has 80,600,941 common shares issued and outstanding.
Operational Update
Blacksteel started field work at Girouxville in November of 2022 to assess the status of the operating facility and implement upgrades to handle higher fluid volumes. These upgrades include pipeline maintenance and upgrades, replacement of oil battery tanks, and conversion of rental to owned equipment amongst other necessary upgrades that lead to reduced operating costs. The work program will allow Blacksteel to reactivate production from three existing wells. The facility enhancements are scheduled to be completed in February 2023 and will provide the required capacity to process additional fluid volumes associated with Blacksteel’s planned production growth.
Blacksteel’s new business plan includes evaluating and capture of international oil and gas opportunities that provide significant near-term accretive growth on a per share basis to Blacksteel’s current reserves, production and/or cash flow. Additional capital may be raised to support these initiatives. These initiatives remain ongoing but as is typical of such transactions, capture and timeline are uncertain and no guarantee of a transaction is assured.
Duncan Nightingale, Blacksteel’s CEO, commented, “The signing of the Definitive Agreement with Drakkar Energy represents another significant milestone in the implementation of Blacksteel’s business plan. The closing of the acquisition of Drakkar in Q1 of 2023 coincides with the reactivation of production from the Girouxville asset. Blacksteel has completed significant necessary upgrades to the Girouxville facility in order to handle higher fluid volumes and anticipates production starting around the end of February or early March.
We look forward to Drakkar security holders becoming shareholders of Blacksteel as we implement the business plan focused on low-risk oil development growth leading to increased production and growing cash flow to the benefit all shareholders. On behalf of everyone at Blacksteel, we thank our shareholders for their support and patience as Blacksteel executes its business plan.”