Vancouver, British Columbia--(Newsfile Corp. - September 25, 2024) - Altima Resources Ltd. (TSXV: ARH) (OTC Pink: ARSLF) (the "Company" or "Altima") is pleased to announce the closing of a Purchase and Sale Agreement dated August 30, 2024 ("the PSA") with Uriel Gas Holdings Corp. ("Uriel") with an effective date of August 1, 2024 pursuant to which Altima has acquired the Assets (as herein after defined) for a price of $450,000 (the "Purchase Price") payable in cash (paid). This amount is inclusive of $312,015 paid to Uriel's creditors who were owed money in relation to the Assets.
This Acquisition solidifies Altima's expansion into the conventional light oil fairways within Alberta, further enhancing the Company's target to position itself as a key player in the energy sector.
The Acquisition grants Altima substantial control over both existing and prospective production, alongside future growth potential.
Asset Highlights:
Central Alberta (W4) - light oil
Northwest Alberta (W5) - sweet natural gas
Extensive Acreage: The Assets cover approximately 10,560.5 gross acres, including 5,920.5 acres, 800 acres and 3,840 acres in three separate and high oil access areas of Alberta.
As part of the Acquisition, Altima has also secured key infrastructure with an Oil Battery in Central Alberta as well as an interest in a natural gas plant in Northwest Alberta. This infrastructure will enable Altima to optimize processing and transportation, control operational costs, and ensure efficient market access. The Acquisition strengthens Altima's position in Alberta's energy sector, providing it with the ability to streamline production and increase profitability.
Proven Reserves: The Asset boasts 127 MBOE of Total Proved Developed Producing Reserves and 531 MBOE of Total Proved Reserves; sourced from a Report prepared by a GLJ Ltd., an independent qualified reserve evaluator, effective June 30, 2023 and prepared in accordance with NI 51-101 Section 5.2.
NPV: $1,360,000 (PDP Before Tax 10% DCF PV) and $9,938,000 (TP Before Tax 10% DCF PV); sourced from a Report prepared by GLJ Ltd., an independent qualified reserve evaluator, effective June 30, 2023, and prepared with the requirements for the determination of future net revenue specified in Form 51-101F1.
Acquisition Metric: $18,000 per producing bbl.
Strategic Upside: This Acquisition is expected to significantly increase Altima's operational capabilities and resource base. With existing infrastructure in place and assets positioned at relatively shallow depths (1200-m) and light-medium oil (34°API), Altima can expedite development with a reasonable capital cost structure, leading to lower operational costs, and increased profitability as compared to other more complex operating areas of Alberta.
Joe DeVries, CEO of Altima commented: "This Acquisition is a positive step for Altima. The Assets we are acquiring provide substantial reserves and production potential. We are confident that our operational expertise will unlock further value from these high-quality Assets, creating significant growth opportunities for our shareholders."
Transaction Overview: Under the terms of the PSA, Altima will acquire a non-operating 95% interest in the Richdale Assets (as defined in the PSA), along with a non-operating 20% interest in remaining asset portfolio, including notable mineral rights in Crossfield East and the Greater Grande Prairie area (collectively, the "Assets"). At closing of the Acquisition (the "Closing"), the parties will enter into a Contract Operating Agreement, under which Altima will be appointed as the Contract Operator (as defined in the Contract Operating Agreement) of the Richdale Assets. The Acquisition grants Altima substantial control over both existing and prospective production of the Assets, alongside future growth potential.
In connection with the Acquisition, Altima will also have a right of first refusal for a period of six months following closing to purchase Uriel's remaining interest in the Richdale Assets; and if left unexercised after the initial six months period will provide Altima with a right of first refusal with respect to any proposed sale of by Uriel of its residual Richdale interest.
Jamie Carlson, a Professional Engineer, is the Qualified Person responsible for preparing and reviewing the data contained in this press release.
About Altima Resources Ltd.: Altima Resources Ltd. is an oil and gas exploration and production company focused on the acquisition and development of hydrocarbon assets in North America. Headquartered in Vancouver, British Columbia, Altima is dedicated to utilizing innovative technology and industry best practices to maximize asset value and drive sustainable growth and drive value for its shareholders.
On behalf of the Board of Directors
"Richard Barnett"
Richard Barnett
Director & Chief Financial Officer
Tel: 604-336-8610
Cautionary Note Regarding Forward Looking Information
Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the closing of the Acquisition on the terms hereof or at all and the timing thereof; the expected benefits of the Acquisitions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's most recent management's discussion and analysis under the heading "Risk and Uncertainties", a copy of which is filed on SEDAR Plus, at www.SEDARplus.com, and readers are cautioned that the risk factors disclosed therein should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224457
SOURCE: Altima Resources Ltd.
