Border Announces Asset Purchase, Officer Appointment and Proposed Private Placement

Source Press Release
Company Border Petroleum Limited 
Tags Equity Financing, Financing, Asset Deals, Deals, People, Upstream Activities
Date July 31, 2014

Border Petroleum Limited (TSX VENTURE:BOR) "(Border" or the "Corporation") is pleased to announce the entering into of an asset purchase agreement, the appointment of a Vice President, Production, a proposed private placement and the grant of options, all as further detailed below.

The Acquisition

Border has entered into a purchase and sale agreement dated July 31, 2014 ("PSA") with a private, arm's length Calgary based junior oil and gas company, whereby the Corporation will acquire certain oil and gas assets (the "Producing Assets") for a purchase price of $2,800,000 payable in cash. The Producing Assets are located in the Chip Lake, Royce, Mulligan and Blueridge areas of North/North Central Alberta and as of the effective date of June 1, 2014 produced approximately 160 bbls of oil equivalent per day comprised of 40 bbls/day of light oil, 25 bbls/d of NGL's and approximately 575 mcf/d of natural gas (the "Acquisition"). The Acquisition provides Border with additional development opportunities in the Charlie Lake, Belly River and Rock Creek formations insofar as management of Border has identified low risk development opportunities in these areas via existing well recompletions and low risk development drilling locations.

Officer Appointment

Border announces that Mr. Russell Tracy, P. Eng. has been appointed to the position of Vice President, Production, subject to TSX Venture Exchange approval. Mr. Tracy was recently the Production Engineer of CanEra Energy and prior thereto had roles in Production & Operations at NAL Resources and Canadian Forest Oil Ltd. Mr. Tracy brings a total of 10 years of direct, field and production related experience to Border.

Private Placement

Border announces that it intends to complete a private placement of common shares of the Corporation issued on a flow-through basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.06 per Flow-Through Share and units ("Units") of the Corporation at a price of $0.05 per Unit. Each Unit will be comprised of one common share of the Corporation (the "Common Shares") and one-half of a share purchase warrant (the "Warrant"). Each full Warrant will entitle the holder to acquire one additional Common Share at a price of $0.06 per share for a period of 2 years (the "Private Placement"). Total gross proceeds from the issuance of the Common Shares and Flow-Through Shares will be between $1,500,000 and $1,800,000 depending on the split of subscriptions received for Common Shares or Flow-Through Shares, with a maximum of 30,000,000 shares being issued in total in respect of the Private Placement. The Flow-Through Shares and Common Shares will be issued utilizing exemptions from the prospectus requirements and will be subject to a four month hold period from the date of issuance. The net proceeds of the Private Placement will be used to further development opportunities that have been identified on the Producing Assets, as well as to fund potential additional acquisitions that have been identified over the past few months. The Corporation will not be paying a finder's fee in relation to the Acquisition and does not intend to pay commission in respect of the Private Placement.

Grant of Options

The Corporation also announces that it has granted 2,700,000 options ("Options") to officers, directors, employees and consultants. Each Option entitles the holder to acquire one Common Share at a price of $0.06 per Common Share for a period of 5 years. One third of the Options will vest immediately and the remaining Options will vest as to 1/3 on each of the first and second year anniversaries of the date of grant.

The Acquisition, Private Placement, Officer Appointment and Option Grant remain subject to TSX Venture Exchange approval.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd