VANCOUVER, Sept. 17, 2018 /CNW/ - Oronova Energy Inc. ("Oronova" or the "Company") (TSX.V: ONV) is pleased to announce the engagement of Advantage Energy Services Ltd. ("AESL") of Calgary, Alberta. AESL is a consulting group of experts specializing in acquisitions support and production optimization of oil and gas assets since 1991.
Over the past 27 years, AESL has created strategic joint ventures and acquisition strategies to create "value add" of over $400 million by working existing assets into greater value situations. Oronova has engaged AESL to identify strategic oil and gas assets and generate projects in the Western Canadian Sedimentary Basin that can be leveraged into high impact plays. AESL has identified a particular new resource play in Western Canada which it is pursuing on behalf of Oronova; further information on this high impact resource play will be released, when available.
As an example of past successes, in 2005, Earl Hickok, Chairman of AESL, was appointed to the Board of Directors of Tusk Energy Corporation, and became President. His team from AESL joined him to help to take TUSK from 400 barrels per day to over 5,000 barrels per day before selling the company in 2009.
Mr. David Farrell of Oronova commented, "Oronova is excited to be working with AESL to establish a foundation for rapid growth and value creation in the Canadian upstream oil & gas sector in the coming months."
The Company is also pleased to announce its plans to complete a non-brokered private placement for $800,000 through the issuance of 10,000,000 common shares at $0.08 per share (the "Private Placement"). Oronova intends to use the net proceeds from the Private Placement for general working capital purposes in the pursuit of property acquisitions, joint venture arrangements and land acquisitions. The Company may pay a finder's fee in connection with the Private Placement in accordance with the rules and policies of the TSX Venture Exchange ("TSXV").
The securities issued in connection with the Private Placement will be subject to a four (4) month hold period in accordance with the TSXV rules and regulations. The closing of the Private Placement and the payment of any finder's fees are subject to the approval of the TSXV and any other governing regulatory bodies.
Under the terms of the Memorandum of Understanding ("MOU") between Oronova and AESL, and subject to closing of a minimum of an initial $200,000 of the Private Placement, Oronova will pay a monthly consulting fee to AESL of $60,000, with the first two months payable in advance. The consulting services will provide the required geological, geophysical, engineering and land evaluation for potential oil and gas prospects within the targeted resource play in Western Canada. The initial term for the consulting services will be for six (6) months, with Oronova having the option to withdraw from receiving the consulting services at the end of the first two months.
Subject to financing, it is AESL's intention to negotiate and execute a number of farm-in and option agreements during the consulting period, through a new company (the "Newco") which has been established by AESL. Furthermore, assuming AESL has secured a number of farm-ins, it is the intention that Oronova will acquire all of the issued and outstanding shares of Newco in return for 10,000,000 common treasury shares of Oronova, with the release of the shares subject to performance provisions, and subject to TSXV and shareholder approval, if required. Upon completion of the share exchange transaction involving Newco, it is anticipated that certain members of AESL and/ or Newco will become officers and/or directors of Oronova.
On behalf of the Board of Oronova Energy Inc.
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
Forward Looking Statements
This news release contains forward looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward Looking Statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risk and uncertainties, There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation within the securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward looking statements/information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known or and unknown risks, uncertainties and other factors many of which are beyond the control of the Corporation. As a result we cannot guarantee that any forward looking statement will materialize and the reader is cautioned not to place any undue reliance on any forward looking statements/information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward looking statements contained in this News release are made as of the date of the release and the Corporation does not undertaken any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
SOURCE Oronova Energy Inc.
For further information: Joanna Vastardis, CFO & Corporate Secretary, Tel: (604) 609-6125