Vancouver, British Columbia, February 17, 2022 – Pulse Oil Corp., (“Pulse” or the “Company”) (TSXV: PUL) is pleased to announce that it intends to undertake a private placement financing (the “Offering”) to fund the advancement of Company’s 100% owned Bigoray area Enhanced Oil Recovery (“EOR”) project.
Pulse intends to raise approximately $12.5 million at a price of $0.05 per unit (each, a “Unit”) with each Unit consisting of one common share of Pulse (“Common Shares”) and one share purchase warrant (each, a “Warrant”) exercisable for a period of one year from the close of the financing to purchase one additional Common Share at an exercise price of $0.065 per share. Currently, Pulse has received commitments to subscribe for approximately $6 million of the Offering from current insiders of Pulse.
The Company plans to use the proceeds from the Offering to acquire the necessary infrastructure and secure a reliable supply of NGL injection solvent needed to execute Pulse’s plans for the EOR project. This step follows the previously announced results from one of the world’s leading providers of technology for reservoir characterization, drilling, production and processing to the oil and gas industry and included three stage of petrotechnical modelling consisting of Geological Study, Geological and Geophysical Modelling and Reservoir Simulation.
Arms-length finder’s fees may be payable to brokerage firms in connection with the Offering. The Offering is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. In addition, it is expected that a new Control Person will be created as a result of this private placement which, pursuant to the policies of the TSX Venture Exchange, will require shareholder approval. Therefore, the Offering is expected to close in Q2 of 2022.
The Shares and Warrants issued in the Offering will be subject to a statutory hold period in Canada of four months and one day following the closing date. The securities issued to insiders will also be subject to a TSX Venture Exchange hold period of the same length.
Pulse is a Canadian company incorporated under the Business Corporations Act (Albert) that is primarily focused on a 100% Working Interest Enhanced Oil Project Located in West Central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years. The Company plans to institute a proven recovery methodology (NGL solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date, and representing approximately 30% recovery factor from the pools, Pulse is moving forward to execute the EOR project and unlock significant value for shareholders. Pulse’s total reclamation liabilities are just $2.5 million which, when compared to many peers in the industry in Western Canada, are very low.
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 release.
For further information contact:
Pulse Oil Corp.
President and COO
Forward Looking Statements:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In this news release, such statements include but are not limited to Pulse’s intention to undertake the Offering, the intended use of proceeds from the Offering, and the expected closing date of the Offering. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Pulse’s current beliefs and is based on information currently available to Pulse and on assumptions Pulse believes are reasonable. These assumptions include, but are not limited to, the interest of investors in the Offering, the receipt of TSX Venture Exchange to the Offering and the receipt of all necessary shareholder approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pulse to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Pulse; the timing and availability of external financing on acceptable terms; and loss of key individuals. A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Pulse’s disclosure documents on the SEDAR website at www.sedar.com. Although Pulse has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Pulse as of the date of this news release and, accordingly, is subject to change after such date. However, Pulse expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.