Petro Viking Energy Inc. Provides Clarification on June 14, 2021 Announcement and Update on the Midwestern Alberta Acquisition for $ 50,664,000 and the Company’s Subsequent Name Change to Avila Energy Corp. | 2021-11-01 | Press Releases
(The press wire)
Calgary, Alberta – The press wire – November 1, 2021 – Petro Viking Energy Inc. (“Petro Viking”Or the“Society”) Is pleased to report the Company’s continued progress toward closing the proposed asset purchase of 100% of the interest of 611890 Alberta Inc. ‘ in 53,835 acres, 43,935 acres (net), of mineral rights, associated wells, pipelines and facilities for the purchase price of C $ 50,664,000 and the subsequent name change of the Company (the “”Acquisition”), Previously announced on June 14, 2021.
At Annual and extraordinary general meeting, held on October 15, 2021, the Company approved the modification of the articles of association of the Company and of CloseCurlyQuote; to give effect to a name change of the Company to Avila Energy Corp. or any other name authorized by the Board of Directors of the Company acceptable to the Canadian Stock Exchange and regulatory authorities in connection with the closure.
The purchase price for the acquisition is satisfied through the issuance of 44,440,000 Class A common shares (the “Ordinary actions”) At a price of $ 0.60 per share and 30,000,000 convertible preferred shares (the“Convertible shares”), Convertible at a price of $ 0.80 per share. The Convertible Shares will have a term of five (5) years and will pay an annual cumulative dividend at the rate of two percent (2%), payable on conversion. Conversion of convertible shares at the option of the holder can only take place after reaching one of the following three milestones: a) the company exceeds the production rate of 3,000 boe / d, b) the ordinary shares are trading at a Volume Weighted Average Price (VWAP) of more than $ 1.00 per share for twenty (20) consecutive business days or c) the second anniversary since the issuance of the common shares has occurred. Upon maturity on the fifth anniversary of their issuance, convertible shares will be automatically redeemed on a 1: 1 basis with all dividends accrued from the issuance of common shares.
Closing is expected to occur after the filing of all necessary documents and receipt of a consent resolution passed by a majority of at least two-thirds (2/3) of the votes cast by the shareholders of the Company. Closure also remains subject to the completion of all necessary related requests and approvals, as would be customary in the industry, and final approval by all regulatory bodies, including the Canadian Securities Exchange (the “CSE”).
Clarification on the press release of June 14, 2021
In addition, the Company wishes to clarify that the measurements, reserves, NPV and locations disclosed for the acquisition were prepared internally as of April 1.st, 2021, by the Company and not by or under the direct supervision of a qualified reserves assessor (“QRE”),as required under section 5.2 of National Instrument 51-101 Disclosure standards for oil and gas activities (“Regulation 51-101”) And has not been prepared in accordance with the Canadian Oil and Gas Evaluation Handbook (“COGE Manual”).
Therefore, the disclosure of Avila Asset’s reserves and other oil and gas information announced on June 14, 2021 does not meet the requirements of NI 51-101, in particular section 5.2, and has not been prepared in accordance with the COGE manual. The reservations and other oil and gas information associated with the acquisition disclosed in the aforementioned press release cannot be relied on for the above reasons.
The Company is continuing its efforts with the CSE and the Alberta Stock Exchange (the “ASC”) To obtain all necessary regulatory approvals in connection with the previously announced acquisition of the assets of 611890 Alberta Inc., which would eventually allow trading in the Company’s common shares on the CSE to resume. To the knowledge of the management of the Company ‘, there are no material circumstances which could adversely affect the delays with regard to which these approvals are obtained. As part of the approval process, the Company intends to issue and execute a resolution of consent of its shareholders in connection with the acquisition upon receipt of the approval by the CSE and ASC of the form of the resolution to be disseminated.
About Petro Viking Energy Inc.
The Company is an emerging CSE publicly traded company (“VIK & CloseCurlyDoubleQuote;) and, in association with its licensed joint venture partner, is an energy producer, explorer and developer in Canada. At low price Carbon neutral energy producer in 2022 the Company will continue to achieve its results by focusing on the application of a combination of proven geological, geophysical, engineering and production techniques.
For more information, please contact:
Leonard B. Van Betuw, President and CEO, at [email protected];
Peter Nesveda, vice president of corporate affairs and investor relations, at [email protected]; Where
Lars Glimhagen, Chief Financial Officer, at [email protected].
President and CEO
Caution Forward-looking information:
Certain information contained in this press release, including transactions in the Company’s & CloseCurlyQuote; properties, constitute forward-looking statements under applicable securities laws. Although Petro Viking Energy Inc. believes that the expectations reflected in these forward-looking statements are reasonable, they should not be relied on unduly as Petro Viking Energy Inc. cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and the Company assumes no obligation to publicly update or revise any forward-looking statements included, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. This press release includes certain statements which may be considered “forward-looking statements & CloseCurlyDoubleQuote;. All statements contained in this press release, other than statements of historical fact, which relate to future production, reserve potential, exploration drilling, operating activities and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results or developments may differ materially from those of forward-looking statements. Factors that could cause actual results to differ materially from those of forward-looking statements include market prices, operating and exploration successes, continued availability of capital and financing, and economic, market conditions. or general commercial. It should not be assumed that the estimates of the net present value of future net income attributable to the Company’s reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company’s oil, NGL and natural gas reserves provided herein are estimates only and there can be no assurance that the estimated reserves will be recovered. In addition, there can be no assurance that the expected price and cost assumptions will be achieved and the differences could be material. Investors are cautioned that these statements are not guarantees of future performance and that such actual results or developments may differ materially from those projected in the forward-looking statements. Oil equivalent barrels (“barrels”) (“boe”) can be misleading, especially if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf = 1 barrel) and are based on an energy conversion method primarily applicable to the burner peak and do not represent a value equivalence at the wellhead. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any jurisdiction in which such offer, solicitation or sale would be illegal. The securities offered have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption. US Securities Act and applicable state registration requirements. securities laws. Trading in securities of Petro Viking Energy Inc. should be regarded as highly speculative. Neither the Canadian Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Stock Exchange) accepts responsibility for the adequacy or accuracy of this release. For more information about the Company, investors should consult the registered documents of the Company and CloseCurlyQuote which are available at www.sedar.com.
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