Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE)
(www.razor-energy.com) and its partners, the federal government,
through Natural Resources Canada (“NRCan”) and Alberta Innovates,
are pleased to announce the funding of a co-produced geothermal
electricity project utilizing an active oil and gas operation in
Alberta (the “Project”).
A $5 million contribution from NRCan’s Clean
Growth Program, and a $2 million contribution from Alberta
Innovates, demonstrates a commitment to cleaner energy creation.
Under the terms of the contribution agreements, NRCan and Alberta
Innovates will assist Razor’s development of a technically viable
and commercially sustainable solution to recover geothermal waste
heat.
The Company expects the capital cost of the
Project to be $15 million to $20 million generating between 3 and 5
MW of electricity. The balance of the Project funding will be
sourced internally and from new private investors within the
renewable energy investment market.
In addition to the Project, Razor anticipates
adding natural gas turbine generation in the 15 MW range. This adds
to the existing natural gas power generation and hydrocarbon
production, continuing Razor’s mission of transforming to a
complete energy platform and simultaneously being a leader in
legacy oil and gas asset management.
Large quantities of earth heat entrained in
produced water surface every day, as part of Razor normal
operations, offering capture of clean and renewable energy to
reduce the overall emissions of the operation and to add power
revenues to Razor. The Project will allow Razor to repurpose its
hydrocarbon assets to add economic renewable energy
development. Utilizing existing operations, such as drilled
and producing wells, a produced water reinjection system, and an
operating gathering/process system, has a substantive effect on
reducing typical geothermal project capital outlay. In
addition, the co-production approach allows geothermal to develop
under the current Alberta framework of world class oil and gas
operations and regulatory best practices.
“Our Government is committed to a clean energy
future that guarantees good middle-class jobs for generations to
come,” said the Honourable Amarjeet Sohi, Canada’s Minister of
Natural Resources. “That’s why we will continue to invest in
innovative projects, such as those in the geothermal industry, that
help fight climate change and strengthen our economy.”
“By supporting clean technology for the oil and
gas sector, our government is demonstrating how a strong economy
and a clean environment go hand-in-hand. Taking what would
otherwise be wasted heat, and using it to generate power, makes
sense for many reasons,” said Kent Hehr, Member of Parliament for
Calgary-Centre. “We will continue to make smart investments to
advance our clean energy future and create economic growth that
benefits everyone.”
"Big Lakes County congratulates Razor Energy
Corp. for obtaining provincial and federal funding for its
co-produced geothermal electricity project. The initiative
highlights the capacity for oil, gas, and renewable energy
production within our county boundaries. We welcome such innovation
and look forward to the positive impact that Razor's project could
have on our community and on Alberta," said Reeve Richard
Simard, Big Lakes County, Alberta.
In association with the Project, the University
of Alberta continues to conduct geothermal research on the heat
potential of the Western Canada Sedimentary Basin.
Sophisticated modelling will be substantiated with actual field
data to ensure the emerging geothermal industry can harness the
expertise and data that exists in today’s Alberta resource
industry.
Razor has collaborated in the Project with the
various governing regulatory bodies to use the current exemplary
regulatory framework, and to work on long term policy to enhance
the development of a geothermal industry and renewable energy.
ABOUT RAZORRazor is a
publicly-traded junior oil and gas development and production
company headquartered in Calgary, Alberta, focused on shareholder
returns through sustainable monthly dividends, production and
margin growth through a combination of acquiring, enhancing, and
producing oil and gas from properties primarily in Alberta. The
Company is led by experienced management and a strong, committed
Board of Directors, with a long term vision of growth focused on
efficiency and cost control in all areas of the business.
Razor started operations in the first quarter of
2017, through an acquisition of producing assets in the Swan Hills
area. In the second quarter of 2017, Razor added to its asset
base with the acquisition of complementary assets in the Kaybob
area. These predominantly light oil assets provide a foundation for
strong shareholder return through abundant low risk operations.
Razor plans to concurrently grow Swan Hills and Kaybob, and execute
on similar acquisitions, using its experience to extract upside
value.
Razor is a pivotal leading-edge enterprise,
balancing creativity and discipline, focused on growing an enduring
energy company. Razor currently trades on TSX Venture
Exchange under the ticker “RZE”.
For additional information please
contact:
Doug BaileyPresident and Chief Executive Officer |
OR |
Kevin BraunChief Financial Officer |
|
|
|
Razor Energy Corp.800, 500-5th
Ave SWCalgary, Alberta T2P 3L5Telephone: (403)
262-0242www.razor-energy.com |
|
Alliance Capital
PartnersGordon
Aldcornwww.alliancecapitalpartners.ca403-618-6507 |
READER ADVISORIES
FORWARD-LOOKING STATEMENTS:
This press release may contain certain statements that may be
deemed to be forward-looking statements. Such statements relate to
possible future events, including, but not limited to, the Project,
including capital costs and the sources of funding, the partnership
with NRCan and Alberta Innovates and the related contribution
agreements. All statements other than statements of
historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as “anticipate”, “believe”, "expect", “plan”,
“estimate”, “potential”, “will”, “should”, “continue”, “may”,
“objective” and similar expressions. The forward-looking statements
are based on certain key expectations and assumptions made by the
Company, including but not limited to expectations and assumptions
concerning the Project’s performance, availability of capital,
current legislation, receipt of required regulatory approvals, the
timely performance by third-parties of contractual obligations, the
Company’s growth strategy, general economic conditions,
availability of required equipment and services and prevailing
electricity prices. Although the Company believes that the
expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can
give no assurance that they will prove to be correct. Since
forward- looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include,
but are not limited to, risks associated with the oil and gas
industry and geothermal electricity projects in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures variability in
geothermal resources; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), electricity price and exchange rate
fluctuations, changes in legislation affecting the oil and gas and
geothermal industries and uncertainties resulting from potential
delays or changes in plans with respect to exploration or
development projects or capital expenditures. Please refer to the
risk factors identified in the annual information form and
management discussion and analysis of the Company which are
available on SEDAR at www.sedar.com. The forward-looking statements
contained in this press release are made as of the date hereof and
the Company undertakes no obligation 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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
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