MOLORI STRIKES DEAL INCREASING WORKING INTEREST TO 50 PERCENT AND SECURING AN ADDITIONAL USD $7.5 MILLION INTEREST IN RESERVES
Borger, Texas — (Newsfile Corp. – October 17, 2017) Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) (“Molori” or the “Company”) is pleased to announce the signing of a definitive agreement to purchase an additional 25% working interest in certain oil and gas leases from its Texas-based operating partner, Ponderosa Energy LLC (“Ponderosa”).
This latest acquisition, combined with the 25% interest Molori presently has in these same leases, will bring Molori’s overall interest to 50%.
In consideration for the acquisition, Molori has agreed to issue to Ponderosa 10 million common shares in Molori and a cash payment of USD $750,000 upon closing, subject to TSX Venture Exchange approval.
Commented Joel Dumaresq, CEO of Molori “This acquisition doubles our interest in existing production and reserves, and we are extremely pleased that we can do this through a highly-accretive transaction for our shareholders. Perhaps most importantly, our balance sheet is further fortified as we position ourselves not only to continue to grow our recompletion business, but to broaden our Red Cave exploration program.”
In an independent NI 51-101 reserve report effective April 1st of this year, and previously published on May 3rd, the 1P (‘Total Proven’) reserves on these leases were then estimated at USD $30.1 million, including USD $21.9 million in PDP and USD $8.2 million in PDNP.
The NI 51-101 was prepared by Amiel David, Ph.D of PeTech Enterprises Inc., in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”), prepared jointly by the Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining. Metallurgy & Petroleum (Petroleum Society).
Dumaresq further commented, “We believe this transaction demonstrates not only the confidence our partners at Ponderosa have in the future growth of Molori, but also our capacity to continue to fund expansion in production and reserves.”
Molori is presently working towards an updated NI 51-101 resource estimate. The Company anticipates that the revised report will include not only “proved” reserves but also 2P (‘Total Probable’) and 3P (‘Total Possible’) resources.