Vancouver, British Columbia--(Newsfile Corp. - November 30, 2017) - Oracle Energy Corp. ("Oracle" or the "Company") (TSXV: OEC) (FSE: O2E) announces the following:
Acquisition
The Company is pleased to announce that it has entered into an agreement with Italmin Energie Sri ("Italmin"), an Italian corporation, to acquire a 16% participating interest in an oil and gas permit situated in central south Italy and referred to as the NUSCO permit (the "Permit"). Italmin currently has a 20% participating interest and is party to a Joint Operating Agreement with a third party that has an 80% interest (the "Majority Interest Holder"). The Company will carry Italmin on its 4% carried participating interest until the Company has spent Euro 800,000 under a joint operating agreement ("JOA"), being its 20% share of a total of Euro 4,000,000 to be spent on drilling and testing operations of a first well. Once Euro 4,000,000 has been expended all parties to the JOA will be responsible to pay their share of costs going forward on th ebasis of the Majority Interest Holder paying 80%, the Company 16% and Italmin 4%.
In addition to the cost of carrying Italmin on its carried interest as outlined above, the purchase price for the Company's 16% participating interest is Euro 30,000 payable as to Euro 10,000 by January 15, 2018 and the remaining Euro 20,000 upon environmental drilling authorization being obtained. Italmin has the right to convert its carried participating interest in all future activities that have origin from the Permit into a gross participating interest with Italmin only paying all taxes, royalties and any other statutory obligations relating to such interest ("Gross Participating Interest")at the conversion rate of receiving 1% Gross Participating Interest for each 4% of carried interest converted.. Conversion into a Gross Participating Interest will result in Italmin receiving its percentage of net profits in payment or kind from the hydrocarbons produced from the Permit without Italmin having to participate in any kind of investment and expenditures in connection with the production of such hydrocarbons.
The Nusco permit in Southern Italy covers 698.5 sq km (172603 acres) and lies along trend with the Val D'Agri complex, the largest and most prolific onshore fields in Europe comprising 5 fields.
There are two structures in the permit. The targets are the Apenninic thrust fronts piled on the Apulian platform, also involved in the thrusting. This petroleum system has only come into play since much better 3D seismic led to the discovery of the first Val D'Agri field in 1988 and the rest followed in the 1990s.
Nusco lies between the Benevento oil field (about 40 km to the north) and the Val D'Agri (about 80 km to the SE). 'The National Energy Strategy estimates Italy's total oil and gas reserves at approximately 700 Million tonnes of oil equivalent (5 billion oil equivalent barrels, conversion factor 1 toe = 7.33 barrel of oil equivalent (boe)), including proven, probable and possible reserves - IEA Italy Country Report. The Company has not verified nor is it relying on the estimates as they have not been prepared in accordance with NI 51-101.
Share Consolidation
The Company also announces that, subject to all regulatory approvals, it intends to amend its share structure by consolidating its issued and outstanding common shares on the basis of one (new) post consolidation share for each ten (old) pre-consolidation shares (the "Consolidation").
The board of directors of the Company believes that the Consolidation is necessary to better position the Company for future corporate development opportunities and financing transactions. There will be no name change in conjunction with the Consolidation.
The Company currently has 62,033,436 common shares issued and outstanding. Following the Consolidation, it is anticipated that the Company will have approximately 6,203,343 common shares issued and outstanding, and continue to trade on the TSX Venture Exchange under the existing stock symbol "OEC".
The exercise or conversion price and the number of common shares issuable under any of the Company's outstanding warrants and stock options will be proportionately adjusted to reflect the Consolidation in accordance with their respective terms thereof. No fractional common shares will be issued pursuant to the Consolidation, and any fractional common shares that would otherwise be issued will be rounded down or up to the nearest whole number.
Financing
The Company also announces that it will conduct a non-brokered private placement (post share consolidation) of up to 33,333,333 units at a price of seven and a half cents per unit ($0.075) to raise proceeds of up to $2,500,000. Each unit will consist of one common share and one common share purchase warrant (the "Unit Warrants") with each Unit Warrant entitling the holder to acquire one additional common share at a price of $0.15 per share for 12 months from closing. The funds from the financing will be used to pay for the Company's acquisition costs and for working capital purposes. Finder's fees on the financing may be payable in accordance with regulatory policies.
ON BEHALF OF THE BOARD OF DIRECTORS.
Peter Francis, CEO
About Oracle Energy Corp.
Oracle Energy Corp. (TSX.V: OEC) (Frankfurt: O2E) is an international oil and gas exploration and development company.
For more information on Oracle Energy visit www.OracleEnergy.com
Neither 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. Forward-looking statements in this release are made pursuant to the 'safe harbour' provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
