CALGARY, ALBERTA--(Marketwired - Aug. 15, 2016) - Perisson Petroleum Corporation ("Perisson" or the "Company") (TSX VENTURE:POG) is pleased to announce that it has agreed to an assignment from Forent Energy Ltd. (the "Assignor") of the right to acquire oil and gas assets in the Ribstone area of Alberta and the Success area of Saskatchewan (the "Acquisition").
The Acquisition will consist of a 10% interest in McLaren and Sparky oil pools at Ribstone, Alberta, and a 10% interest in a Roseray oil pool at Success, Saskatchewan. The Ribstone and Success pools are not currently producing and have 5 wells and 2 wells respectively on the properties, which were suspended from production due to low oil prices in the last 16 months.
The Alberta Energy Regulator has assigned 6 million barrels of oil in place to the Ribstone pool, and, to date, only 5% of this oil has been recovered. Upon closing of the Acquisition, Perisson will become operator of the properties and intends to improve the operating efficiencies at Ribstone by recompleting one of the existing wells, or by drilling a new well, to provide onsite water disposal and reduce the current operating expenses.
The Assignor has identified 10 future McLaren well locations and 8 Sparky well locations which it believes can be placed on production for less than $15,000/BOE/day. Perisson will evaluate the merits of this proposed program, and proceed with drilling of new wells upon the recovery of oil prices.
The Success project has two existing Roseray wells which require the installation of high-volume bottom hole pumps and the conversion of a third well to water injection as part of the improvement in operating efficiency which is planned by Perisson.
As part of the terms of the Acquisition, Perisson will have the right to acquire a further 40% working interest in both the Ribstone and Success properties, upon evaluation of the results obtained by improving the operating costs or the drilling of additional wells. The acquisition price for the additional 40% working interest will be based on a 20% premium to the original purchase price plus the proportionate 40% share of the remediation expenditures which are to be incurred after Perisson becomes the operator. The Perisson option to acquire this additional interest must be exercised within 120 days of the remediation activities and first production from the existing wells.
About Perisson Petroleum Corporation
On July 21, 2016, Perisson Petroleum Corporation commenced trading on the TSX-V under the symbol "POG". The Company holds a 100% working interest in 39,927 hectares (almost 100,000 acres) known as the VMM-17 block, a license located in the prolific, stable, oil-producing region of the Middle Magdalena Basin in central Colombia. The Corporation also maintains a beneficial interest in certain oil and gas producing properties (approximately 200 boe/d) in the Twining area of Alberta, Canada. The Corporation's objectives are to explore, exploit and produce oil from its growing interests in the Western Canada Sedimentary Basin as well as the relatively shallow reservoirs believed to be within the VMM-17 block.
This news release includes certain information, with management's assessment of Perisson's future plans and operations, and contains forward-looking statements which may include some or all of the following: (i) anticipated production rates; (ii) expected results of capital programs; (iii) expected timelines for production optimization; (iv) net debt levels; (v) anticipated operating costs; and (vi) expected capital projects and associated spending; which are provided to allow investors to better understand the Company's business. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Perisson's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, changes in environmental tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, and other risks and uncertainties described under the heading 'Risk Factors' and elsewhere in the Company's Management Discussion and Analysis and other documents filed with Canadian provincial securities authorities and are available to the public at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Perisson has made includes security of land interests; drilling cost stability; finance and debt markets continuing to be receptive to financing the Company, the ability of the Company to monetize non-core assets and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Perisson disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Trading in the securities of Perisson Petroleum Corporation should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.