Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is
pleased to announce that it has closed its acquisition of certain
non-operated working interest assets in its Swan Hills, Alberta
core region (the “Assets”) for a total purchase price of $5 million
cash, subject to certain closing adjustments (the “Acquisition”) as
previously announced in its August 4, 2021 press release.
The Acquisition was funded by Arena Investors,
LP (“Arena”) by way of an amended term loan agreement. Arena is an
institutional asset manager with US$2.2 billion of committed assets
under management that specializes in providing innovative capital
solutions for middle market companies.
The Acquisition enables Razor to
cost-effectively add long-life, industry-leading ten percent annual
base decline, low-risk, light oil reserves (41o API), production
and cash flow underpinned by an improving commodity price
environment as crude oil supply/demand returns to balance.
Meanwhile, FutEra Power Corp. (“FutEra”), a
subsidiary of Razor, continues construction on our
first-of-its-kind Swan Hills Geothermal Project. FutEra is
currently reviewing additional projects including solar, wind and
well-head geothermal. In addition, FutEra recently commissioned its
wholly owned 10 petahash bitcoin mining operation which includes
supplying self-generated power and the mining installation. As
well, Razor has now completed construction on its Virginia Hills
Soil Treatment Facility which will be operational in the third
quarter of 2021.
Razor and FutEra continue to identify and
capture opportunities to liberate alternative sources of energy
while measurably improving the environmental and social impacts of
our business.
Further information with respect to this acquisition, Razor’s
conventional oil and gas operations and FutEra’s geothermal and
ongoing innovative projects may be found in our updated corporate
presentation found on www.razor-energy.com.
FutEra Adopts Stock Option
Plan
The Company also announces today that the board
of directors has approved the adoption of a fixed stock option plan
(the “FutEra Option Plan”) for FutEra.
Under the FutEra Option Plan, FutEra may grant
options to acquire up to an aggregate of 284,000 common shares of
FutEra (each a “FutEra Share”), subject to the terms of the FutEra
Option Plan and applicable securities laws. It is anticipated that
the options will be granted by the board of directors of FutEra
(the “FutEra Board”) to certain officers and employees of FutEra
for both retention purposes and in recognition of their continuing
efforts in assisting FutEra to become a leader in Alberta clean
power generation by evolving existing assets with new and
innovative solutions. Once granted, the options will be subject to
vesting conditions as determined by the FutEra Board, including an
anticipated term of five years from the date of issuance.
The FutEra Option Plan remains subject to
approval by the TSX Venture Exchange.
About Razor
Razor is a publicly traded junior oil and gas
development and production company headquartered in Calgary,
Alberta, concentrated on acquiring, and subsequently 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
currently trades on TSX Venture Exchange under the ticker
“RZE.V”.
www.razor-energy.com
About FutEra
FutEra leverages Alberta’s resource industry
innovation and experience to create transitional power and
sustainable infrastructure solutions to commercial markets and
communities, both in Canada and globally. Currently FutEra is
developing a co-produced geothermal and natural gas hybrid power
project in Swan Hills, Alberta.
www.futerapower.com
For additional
information
please
contact:
Doug
Bailey |
Kevin
Braun |
President and Chief Executive Officer |
Chief Financial Officer |
Razor Energy Corp.800, 500-5th Ave SW Calgary, Alberta T2P
3L5Telephone: (403) 262-0242
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
Company’s capital program and other activities such as the
development of geothermal and other environmentally and socially
innovative projects. 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 availability of capital, current legislation,
receipt of required regulatory approvals, the timely performance by
third-parties of contractual obligation, the success of future
drilling and development activities, the performance of existing
wells, the performance of new wells, the Company’s growth strategy,
general economic conditions, availability of required equipment and
services, prevailing commodity prices, price volatility, price
differentials and the actual prices received for the Company's
products. 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; as the
uncertainty of reserve estimates; the uncertainty of estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks), electricity and commodity 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. In
addition, the Company cautions that COVID-19 may continue to have a
material adverse effect on global economic activity and worldwide
demand for certain commodities, including crude oil, natural gas
and NGL, and may continue to result in volatility and disruption to
global supply chains, operations, mobility of people and the
financial markets, which could continue to affect commodity prices,
interest rates, credit ratings, credit risk, inflation, business,
financial conditions, results of operations and other factors
relevant to the Company. The duration of the current commodity
price volatility is uncertain. 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.
ADVISORY PRODUCTION
INFORMATION: Unless otherwise indicated herein, all
production information presented herein is presented on a gross
basis, which is the Company's working interest prior to deduction
of royalties and without including any royalty interests.
BARRELS OF OIL EQUIVALENT: The
term "boe" or barrels of oil equivalent may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil equivalent
(6 Mcf: 1 bbl) is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Additionally, given that the
value ratio based on the current price of crude oil, as compared to
natural gas, is significantly different from the energy equivalency
of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an
indication of value.
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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