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Tenth Avenue Petroleum Signs Letter of Intent to Acquire 82 boe/d and Launches $1.7 Million Financing
CALGARY, AB / ACCESSWIRE / October 3, 2024 / NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISS...
About this update from Decimus Oil Corp.
[{"type":"text","content":"Tenth Avenue Petroleum Signs Letter of Intent to Acquire 82 boe/d and Launches $1.7 Million FinancingCALGARY, AB / ACCESSWIRE / October 3, 2024 / NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION IN THE UNITED STATESTenth Avenue Petroleum Corp. (\"TPC\" or the \"Company\") (TSXV:TPC) is pleased to announce that the Company has signed a non-binding Letter of Intent (\"LOI\") 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 Company is also pleased to announce a non-brokered private placement of up to 17,000,000 units (\"Units\") of the Company, at an offering price of $0.10 per Unit, with each Unit being made up of one common share and one-half (1/2) common shares purchase warrant (\"Warrant\") for gross proceeds of up to C$1,700,000 (the \"Offering\"). Closing of the Offering is expected to occur on or about October 25, 2024.KEY ACQUISITION HIGHLIGHTSIncrease scale and efficiency. The Acquisition is a non-operated interest and is expected to add approximately 82 boe/d(1) (492 mcf/d) of natural gas production, increasing production by approximately 88%, while providing an attractive land and inventory base to support future growth opportunities. The Company will benefit from economies of scale as these assets can be integrated without an increase to general and administrative expenses.Low decline production base. Annual base production decline of approximately 8% with long-life proved reserves.Expanding operating area in Southern Alberta. The Acquisition further expands our multi-zone development, exploration and optimization opportunities in Southern Alberta, adding approximately 32.23 gross (15.67 net) sections of contiguous lands.Accretive transaction. The Acquisition is expected to be immediately accretive on key metrics, including 64% higher on production per share basis(3), enhanced funds flow and increased future reserves.Future Production Additions. Approximately 250 mcf/d of low-risk production additions, currently behind pipe due to egress issues.Acquisition is based on estimated production of acquired production 82 boe/d (100% gas).Specified financial measure that does not have any standardized meaning prescribed by International Financial Reporting Standards (\"IFRS\") ...