Business
Petrolympic to Acquire a 30% Interest in All Squatex Properties
MONTREAL, May 16 /CNW/ - Petrolympic Ltd. ("Petrolympic" or the "Company") (TSX VENTURE: PCQ.V) i...
About this update from Petrolympic Ltd.
[{"type":"text","content":"\n\n\n\nMONTREAL, May 16 /CNW/ - Petrolympic Ltd. ("Petrolympic" or the\n"Company") (TSX VENTURE: PCQ.V) is pleased to announce that it has entered\ninto a binding letter of agreement (the "Agreement") with Ressource & Energie\nSquatex inc. ("Squatex") pursuant to which Petrolympic will acquire a 30%\nlegal and beneficial interest in 36 exploration permits totaling 672,438\nhectares in the St. Lawrence Lowlands, Bas St-Laurent and Gaspe Peninsula in\nQuebec (the "Transaction").\n\n\nUpon signing of the Agreement, Petrolympic made an initial payment of\n$500,000 to Squatex in order to cover certain outstanding payments on the\npermits.\n\n\nIn order to complete the acquisition of the interest in the Squatex\nproperties, Petrolympic is required to make additional cash payments of\n$1,000,000 on June 30, 2008 and $1,000,000 on July 31, 2008, with $1.8 million\nof such funds to be used for exploration of the properties and $200,000 made\navailable to Squatex for its working capital. If Petrolympic does not make\nthese payments for any reason, it will convert the initial $500,000 payment to\nan 8% equity interest in Squatex.\n\n\nThe Transaction remains subject to Petrolympic's satisfactory due\ndiligence.\n\n\nPetrolympic Ltd.\n\n\nPrior to completion of the Transaction, Petrolympic holds more than\n113,906 hectares (281,468 acres) of oil and gas exploration permits in the\nAppalachian Basin of Quebec that include holdings in the Gaspe Peninsula and\nin the southern part of the St. Lawrence Lowlands. The Gaspe block of\nexploration permits totals 40,885 hectares located between Rimouski and Matane\nin the Province of Quebec immediately southwest of Lake Matapedia. The St.\nLawrence Lowlands Block of exploration permits is located on the south shore\nof the St. Lawrence directly south of Valleyfield less than 30 kilometers\nsouthwest of Montreal in the Province of Quebec.\n\n\nFORWARD-LOOKING STATEMENTS\n\n\nThis press release includes certain "forward-looking information" within\nthe meaning of the Securities Act (Ontario), including, but not limited to,\nstatements as to timing and extent of exploration programs and the\navailability of exploration results. As such, forward-looking information\naddresses future events and conditions and so involves inherent risks and\n...