OTC SYMBOL: HIPCF - (OTC:BB)
VANCOUVER, May 11 /CNW/ - HIP Energy Corporation (OTC:BB - "HIPCF") (the "Company") is pleased to announce that it has closed on two separate private placements each at the offering price of $0.25 per share for total combined aggregate proceeds of $1,129,000. The first placement was for $629,000 representing 2,516,000 common shares and the second for $500,000 representing 2,000,000 common shares. As a condition of the second $500,000 placement, the placee has contractually committed and agreed to provide additional funding to the Company of $2,000,000 at a price of $0.50 per share if the Company achieves 30 consecutive days of average daily oil production (or gas equivalent) of an average of 100 bbl oil per day for 30 consecutive days from five well bores using the HIP Downhole Process Technology; and $4,000,000 at $1.00 per share if the Company achieves 30 consecutive days of average daily oil production (or gas equivalent) of 200 bbl per day from 10 wells using the HIP Downhole Process Technology excluding any production from the initial five production wells.
The proceeds from the private placements are intended to be used to allow the Company to proceed with the development of its well development program using the HIP Downhole Process Technology and for general working capital.
Appointment of Additional Officer:
The Company is pleased to announce the appointment of Michael Hines as Vice-President Finance: Mr. Hines (49) is a Chartered Accountant by profession has held various high level executive positions both in private and public practice. Mr. Hines is currently a principal of EHS Partners a position he has held since 2001. In addition he has served as CFO for the WJS Group of Companies; Senior Project Manager for "P3 International Trade and Investments Inc."; Executive Vice President of "Lameque Quality Group Ltd."; and a Partner and Senior Vice-President of KPMG and KPMG Inc., where he held responsibilities covering audit, consulting, forensic and insolvency engagements for clients in the public and private sectors. Mr. Hines areas of specialty include business restructuring and tax planning and forensic accounting engagements.
Mr. Hines holds a B.Com degree from Mount Allison University, Sackville NB - 1977; a CA designation form the Institute of Chartered Accountants - 1979; and was a former Trustee in Bankruptcy - Superintendent of Bankruptcy - 1994.
In commenting about these recent developments, the Company's President Mr. Richard Coglon provided the following commentary:
"With the private placement funds now in hand, management's initial focus will be to concentrate its operations on applying the HIP Technology to known existing and proven well bores and reservoirs that have become non commercial, uneconomic, depleted or damaged. By proving out the viability and success of the HIP Technology in dramatically increasing production from a defined segment of well bores and reservoirs, we believe the Company will be in an enviable position of building a diverse portfolio of oil and gas reserves, profitable production, and forward looking investment opportunities for the company, its shareholders and investors."
HIP Energy Corporation.
Per: Mr. Richard Coglon (B.Com/LL.B)
President / Director
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
FORWARD LOOKING STATEMENTS
Certain statements in this document are forward-looking statements or information (collectively "forward-looking statements"), within the meaning of the applicable securities legislation. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as: "will", "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intend," "plan," "projection," "could," "vision," "goals," "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In particular, the forward-looking statements in this news release include: that the proceeds from the private placements are intended to be used to allow the Company to proceed with the development of its well development program using the HIP Downhole Process Technology and for general working capital, and that management believes that by proving out the viability and success of the HIP Technology in dramatically increasing production from a defined segment of well bores and reservoirs the Company will be in a position of building a diverse portfolio of oil and gas reserves, profitable production, and forward looking investment opportunities for the company, its shareholders and investors.
Although the Company believes that the expectations reflected by the forward-looking statements presented in this document are reasonable, the Company's forward-looking statements have been based on assumptions and factors concerning future events that may prove to be inaccurate. Those assumptions and factors are based on information currently available to the Company about itself and the businesses in which it operates. Information used in developing forward-looking statements has been acquired from various sources including third party consultants, suppliers, regulators and other sources. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. The Company's Annual Report on Form 20-F and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com and the EDGAR website www.sec.gov) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
SOURCE HIP ENERGY CORP.
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