NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATES
CALGARY, AB / ACCESSWIRE / October 29, 2024 / Tenth Avenue Petroleum Corp. ("TPC" or the "Company") (TSXV:TPC) further to its October 3, 2024 Press Release, the Company is pleased to announce that it has entered into a Purchase and Sales Agreement ("PSA") to acquire (the "Acquisition") approximately 82 boe/d (492 mcf/d) of low decline, long-life producing natural gas assets located north east of Brooks, Alberta from an arm's length party.
The Acquisition is comprised of two non-operated Units (49% working interest) and 8 non-unit wells (25% working interest) of 8% low-decline natural gas production, currently producing from the Milk River, Second White Specs and Medicine Hat zones. The Acquisition provides multi-zone upside over 32 gross (16 net) sections of contiguous land at Patricia and Dinosaur areas located northeast of Brooks, Alberta. The region has seen rapid transition to horizontal drilling, with producers targeting the Mannville Group, including the Glauconitic, Ellerslie, Sunburst, Basal Quartz zones, among other prospective intervals.
"This acquisition builds on TPC's growing platform in the Southern Alberta Mannville stacked oil fairway, complementing our existing production at Murray Lake, Vulcan & Hays that will continue to serve as a key driver of production and reserve growth." said Cameron MacDonald, President & CEO. The producing assets and infrastructure are located in the core of the Southern Alberta area and are supported by the region's most focused and active producers. The Acquisition further expands our land position in the area, provides low-cost gas optimization and future development opportunities, achieves economic synergies by reducing per boe costs, increases production, enhances funds flow and increases reserves.
Pursuant to the PSA, the Company has agreed to purchase the Assets from the Vendor with an effective date of October 1, 2024 (the "Effective Date") for aggregate consideration of $50,000 (the "Purchase Price"), which such Purchase Price will paid through the issuance of 500,000 common shares of the Company at deemed share price $0.10 per common share.
The Acquisition is expected to close on or about November 29, 2024 (the "Closing"). The Closing is subject to and conditional upon other things, receiving no right of first refusal notice from an applicable third party on the assets of the Acquisition, other customary conditions and approvals, including the approval of the TSX Venture Exchange and is subject to normal course closing adjustments.
About Tenth Avenue Petroleum Corp. Tenth Avenue Petroleum Corp. is a junior oil and gas exploration and production company with operations in Alberta.
Forward-looking Information and Statements The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the impact of the COVID-19 pandemic on the Company's business and operations (and the duration of the impacts thereof). the inability of the Company to meet its commitments on its lands or on the lands it may acquire, the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves, changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits the Company will derive from them. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements. Investors are encouraged to review and consider the additional risk factors set forth in the Company's continuous disclosure documents which are available on SEDAR at www.sedar.com.
Oil and Gas Advisories Meaning of Boe The term "boe" or barrels of oil equivalent may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
Reserves Estimates The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.
Non-GAAP Measurements The Company utilizes certain measurements that do not have a standardized meaning or definition as prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the calculation of similar measures by other entities, including but not limited to operating netback, cash flow and working capital. Readers are referred to advisories and further discussion on non-GAAP measurements contained in the Company's continuous disclosure documents. Operating netback is a non‐GAAP measure calculated as the average per boe of the Company's oil and gas sales, less royalties and operating costs.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
