Business
PetroSun Provides Operational Update and Announces New Convertible Financing
PetroSun Provides Operational Update and Announces New Convertible Financing.
About this update from Petrosun, Inc.
[{"type":"text","content":"Company Will Resume Drilling at Manuel Seep During Week of October 31Executes Convertible Note for Up to $1.5 Million in ProceedsCompany Announces Termination of Existing Share Purchase AgreementPHOENIX, AZ / ACCESSWIRE / October 28, 2022 / PetroSun, Inc. (OTC PINK:PSUD) (the "Company") announced today that it plans to commence drilling operations at its Manuel Seep field during the week of October 31. The Company has executed a drilling contract with Aztec Well Servicing Co. and plans to resume drilling operations at the Manuel Seep 2-1 Well (the "MS 2-1") in order to reach total depth. The well is prospective for helium.Drilling operations on the MS 2-1 were previously suspended during COVID-related lockdowns. The resumption of operations will deepen the existing wellbore to its target depth, and the well will then be tested to determine the presence and size of any helium discovery.Dr. R. Gerald Bailey, the Chief Executive Officer of PetroSun, stated, "We are excited to announce the resumption of drilling operations at Manuel Seep. Based on the Company's previous geological work, we consider the dome formation underlying the MS 2-1 to be highly prospective for helium. We also look forward to working with Aztec Well Servicing Co. on the project, since we have known the Aztec team for a number of years and we are very familiar with their reputation and track record."The Company also announced today that it has executed a new convertible financing, which replaces the previously announced Share Purchase Agreement. Committed proceeds of the new financing, which total approximately $1.1 million, are designated to fund the drilling activity on the MS 2-1, in addition to certain general and administrative expenses. The new, prepayable, convertible loan replaces the Stock Purchase Agreement dated February 3, 2022, which was terminated concurrently with the execution of the new loan. The conversion price under the new convertible loan is $0.15 per share of the Company's common stock.Dr. Bailey commented that, "We are pleased to announce this new convertible loan and another recent transaction that removed approximately $1.8 million in debt from the Company's balance sheet. The termination of the Share Purchase Agreement follows recent turbulence that we have seen across all equity markets since the SP...