Calgary, Alberta – Blacksteel Power Inc. (“Blacksteel” or the “Company“) is happy to announce that it has signed a letter of intent (the “Proposed Transaction“) to accumulate Drakkar Power Ltd. (“Drakkar Power“).
Drakkar Power is a privately held oil and fuel producer in Alberta whose sole producing asset is a 70% working curiosity within the collectively held Girouxville asset with Blacksteel. Complete consideration is roughly $3.2 million consisting of a mixture of shares, money and assumption of debt.
Jeff Callaway, Blacksteel’s CEO, commented, “The acquisition of Drakkar is a major milestone for Blacksteel which consolidates possession to 100% of the Girouxville Montney gentle oil producing asset. With over 30 places recognized and 12-month paybacks on potential new wells, Blacksteel will be capable to extra effectively function and develop the manufacturing base resulting in elevated money circulate. Wells on the asset base are high decile manufacturing performers within the area. The phrases of the transaction are very accretive to Blacksteel shareholders with 2P NPV 10% earlier than tax reserves estimated independently by the reserves auditor at $26 million. The work program is predicted so as to add further places to Blacksteel’s reserve estimates as solely 7 wells are at the moment booked in reserves.”
“As Blacksteel progresses in the direction of closing the second tranche of its financings, we look ahead to implementing a piece program to develop manufacturing adopted by a list on a Canadian inventory trade. Moreover, this asset base will help our worldwide progress plans that are designed to offer the following leg of progress for the corporate.”
Keith Macdonald, President of Drakkar acknowledged, “The acquisition by Blacksteel offers a number of advantages to Drakkar stakeholders. The mixed entity will be capable to function extra effectively and the work program carried out by Blacksteel will develop manufacturing and money circulate to ranges that Drakkar couldn’t fund by itself. Our settlement features a clause to go public so shareholders could have liquidity whereas introducing the mixed firm to new traders. Thirdly, the worldwide progress plans of Blacksteel present a major subsequent stage of progress that Drakkar traders will profit from. I’ve been impressed by the execution of the marketing strategy by the crew at Blacksteel and consider Drakkar shareholders will probably be in good arms primarily based on the standard manufacturing and upside potential at Girouxville.”
Proforma Highlights:
- 30 growth places however solely 7 booked places at the moment booked in reserves
- $26 million 2P NPV 10 BT worth of reserves
- 2.23 million barrels of oil equal of gross reserves
- 7,710 acres of land
- $25.4 million in tax swimming pools
Proposed Transaction Particulars:
The acquisition of all the issued and excellent securities of Drakkar for whole consideration of roughly $3.2 million is as follows:
- Roughly 2.3 million frequent shares within the capital of Blacksteel (the “Frequent Shares“) in trade for 23 million frequent shares of Drakkar
- 7.056 million Frequent Shares in trade for the excellent convertible debentures of Drakkar
- 9.564 million Frequent Shares in trade for excellent most popular share of Drakkar
- Roughly $251,000 in money and seven.85 million Frequent Shares for sure excellent payables
- Assumption of roughly $313,000 of debt
- As much as a $250,000 mortgage (the “Mortgage“) from Blacksteel to Drakkar, at an rate of interest of 8%, for use for common company functions. The Mortgage is secured in opposition to sure marketable securities and a 25% working curiosity within the Girouxville asset
- Itemizing of the Frequent Shares on a acknowledged inventory trade on or earlier than June 30, 2023
The Proposed Transaction is conditional on the completion of due diligence, authorized evaluate, tax recommendation and signing of a definitive settlement that’s passable to Blacksteel and Drakkar.
Completion of the Proposed Transaction can be topic to the next further situations, together with however not restricted to: (i) approval from Drakkar securityholders with respect to the Proposed Transaction; (ii) completion of a number of personal placements for gross proceeds of not lower than $2,000,000 (collectively, the “Providing“). Proceeds from the Providing will probably be used for capital expenditures on the Girouxville asset, working capital and common company functions; (iii) the approval, if essential, by the shareholders of Blacksteel of the Proposed Transaction.
Blacksteel Power Inc.
Blacksteel is a junior oil and fuel firm concerned within the exploration, growth and manufacturing of petroleum and pure fuel sources.
Jeff Callaway
President and CEO
(403) 540-2408
Ahead Wanting Statements:
This information launch incorporates “forward-looking statements” which can be primarily based on expectations, estimates, projections and interpretations as on the date of this information launch. Ahead-looking statements are continuously characterised by phrases equivalent to “plan”, “anticipate”, “undertaking”, “search”, “intend”, “consider”, “anticipate”, “estimate”, “counsel”, “point out” and different comparable phrases or statements that sure occasions or situations “might” or “will” happen, and embody, with out limitation, statements concerning: the phrases and situations of the Proposed Transaction; phrases and situations of the Proposed Providing; use of proceeds from the Providing; future growth plans; and the enterprise and operations of the ensuing issuer after completion of the Proposed Transaction. Ahead-looking statements relate to data that’s primarily based on assumptions of administration, forecasts of future outcomes, and estimates of quantities not but determinable. Any statements that specific predictions, expectations, beliefs, plans, projections, targets, assumptions or future occasions or efficiency will not be statements of historic reality and could also be “forward-looking statements.” Ahead-looking statements are topic to a wide range of dangers and uncertainties which may trigger precise occasions or outcomes to vary from these mirrored within the forward-looking statements, together with, with out limitation: dangers associated to failure to acquire enough financing on a well timed foundation and on acceptable phrases; dangers associated to the result of authorized proceedings; political and regulatory dangers related to oil and fuel exploration; dangers associated to the itemizing and upkeep of inventory trade listings; dangers associated to environmental regulation and legal responsibility; the potential for delays in exploration or growth actions or the completion of feasibility research; the uncertainty of profitability; dangers and uncertainties referring to the interpretation of drilling outcomes; dangers associated to the inherent uncertainty of manufacturing and price estimates and the potential for surprising prices and bills; the chance that future exploration and growth outcomes won’t be in step with the Company’s expectations; dangers associated to commodity value fluctuations; and different dangers and uncertainties associated to the Company’s prospects, properties and enterprise detailed elsewhere within the Company’s disclosure file. Such ahead trying statements contain recognized and unknown dangers, uncertainties and different components which can trigger the precise outcomes, efficiency or achievements of the Company to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date hereof and the Company doesn’t assume any obligation to replace or revise them to replicate new occasions or circumstances besides in accordance with relevant securities legal guidelines. Precise occasions or outcomes may differ materially from the Company’s expectations or projections.
