/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE U.S./
CALGARY, Nov. 20, 2018 /CNW/ - Pulse Oil Corp.
("Pulse" or the "Company") (TSX-V: PUL and
PUL.WT) announced the closing of its previously announced
(November 12, 2018) public offering
(the "Offering") led by Mackie Research Capital Corp. and
Pulse's concurrent strategic private placement (the
"Placement") for gross proceeds of $11,300,520, including the exercise of the
over-allotment option under the Offering.
Pulse will immediately begin to carry out its business plan to
grow production, cashflow and reserves through an expedited
investment in the Company's 100% controlled Bigoray Enhanced Oil
Recovery ("EOR") project, Bigoray well reactivations and
Pulse's 100% controlled Queenstown
drilling program of which Pulse will provide detailed updates in
the near future, as required.
Pursuant to the Offering, Pulse will issue 11,137,600
flow-through common shares of the Corporation ("FT Shares")
at a price of C$0.22 per FT Share and
15,953,555 units of the Corporation at a price of C$0.21 per Unit for aggregate proceeds of
C$5,800,519, inclusive of the
proceeds from the over-allotment option.
Each Unit was comprised of one common share in the capital of
the Corporation (each, a "Common Share") and one-half of one
Common Share purchase warrant (each whole warrant, a
"Warrant"), and each FT Share was a Common Share issued on a
"flow-through" basis within the meaning of the Income Tax
Act (Canada). Each Warrant
entitles the holder thereof to acquire one Common Share (each, a
"Warrant Share") at an exercise price of C$0.30 per Warrant Share for a period of 24
months following the closing of the Offering.
In addition, Pulse has concurrently completed a concurrent
private placement with certain strategic investors, issuing,
26,714,285 units (the "Private Placement Units") of the
Company at a price of approximately $0.2058 per Unit for aggregate gross proceeds of
$5,500,001.11. At closing, Pulse also
paid an investment fee equal to 7% of the Placement by issuing an
additional 1,309,524 Units of Pulse.
Pulse CEO, Garth Johnson,
commented, "We would like to thank all our past investors, our new
investors that participated in this recent financing and Mackie
Research Capital Corp. We will use the proceeds of the equity
financing to execute our operations plan immediately. A strong,
debt-free balance sheet allows us to execute a cost-effective
operational program that we feel is best suited to provide
long-term value growth. We look forward to advancing our
Queenstown drilling operations,
our Bigoray reactivations and the EOR implementation at
this very exciting time for Pulse Oil and our shareholders."
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About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the
Business Corporations Act (Alberta) that is fully funded for its next
year of operations including the Bigoray EOR program and drilling
in Queenstown. Pulse owns 100%
interests in the Bigoray area of Alberta, which includes two Nisku oil Pinnacle Reefs as well as 100%
interests in producing assets. Pulse is moving forward to grow
production and execute an Enhanced Oil Recovery project to unlock
significant value for shareholders through control of approximately
65 net sections of land across the Mannville, Cardium, Pekisko/Shunda,
Nisku and Duvernay Shale trends in
Western Canada. Pulse will also
continue to focus on acquiring affordable, small to medium sized
proven oil and gas assets with significant upside. The Company
plans to achieve further growth through low-risk, technically
diligent drilling within its Queenstown assets, infrastructure ownership
and reserve growth utilizing proven enhanced oil recovery
techniques and implementation of technology.
Neither the TSX Venture Exchange, Inc. nor its Regulation
Service Provider (as that term is defined under the policies of the
TSX Venture Exchange) has neither approved nor disapproved of the
contents of this press release.
READER ADVISORY
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The words "believe," "expect," "anticipate,"
"plan," "intend," "foresee," "should," "would," "could" or other
similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature.
Such statements include, without limitation, statements pertaining
to Pulse's expectations to achieve regulatory approval relating to
the well reactivations as well as the planned
operations and anticipated results related to the Bigoray assets,
including the anticipated timing to reactivate the wells and
Pulse's Queenstown drilling.
Statements relating to "reserves" are also deemed to be
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves can
be profitably produced in the future.
The forward-looking statements are based on management's current
expectations and beliefs concerning future developments and their
potential effect on the Company based on information currently
available to management. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting Pulse will
be those anticipated. Statements in this press release containing
forward-looking information include but are not limited to the
Bigoray or Queenstown projects,
the availability of sufficient funds to meet Pulses's planned
capital expenditure program, the planned development of the Bigoray
and Queenstown projects and
Pulse's operations. Forward-looking information involves known and
unknown risks, uncertainties, assumptions and other factors that
may cause actual results or events to differ materially from those
anticipated in such forward-looking information. Important factors
that could cause actual results to differ materially from those in
the forward looking statements include, but are not limited to: the
volatility of commodity prices, product supply and demand,
competition, access to and cost of capital, the assumptions
underlying production forecast, the quality of technical data;
environmental and weather risks, including the possible impacts of
climate change, the ability to obtain environmental and other
permits and the timing thereto, government regulation or action,
the costs, timing and results of drilling operations; the
availability of equipment, services, resources and personnel
required to complete the Company's planned operating activities;
access to and availability of transportation, processing and
refining facilities, acts of war or terrorism; and general economic
conditions and other financial, operational and legal risks and
uncertainties. The forward-looking statements contained in this
press release are made as of the date hereof and the Company
undertakes no obligations to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Pulse Oil Corp.