Petrolia announces intent to acquire Bow Energy
Friday, October 27 2017 - 12:47 AM WIB
US-based Petrolia Energy Corporation announced Thursday the signing of a Letter of Intent (LOI) to acquire 100 percent of Canada-based Bow Energy Ltd.
Petrolia said in a statement that this LOI is non-binding and subject to various conditions, of which both parties have completed their accounting, technical, and legal due diligence, amongst others and have the approval of their respective board of directors.
The parties have now moved on to drafting a formal binding agreement subject to customary shareholder and stock exchange approvals as may be required, the statement said.
"This is a key acquisition for Petrolia as we look to expand our reach into other prolific oil and gas regions," said James E. Burns, President of Petrolia. "The acquisition of Bow provides us with a significant increase in net proven acreage, reserves, and cashflow, all of which facilitate our ability to further develop our assets, including our Permian Basin Twin Lakes field. The sum result of this proposed transaction will provide us with a clear path towards up listing our shares to an internationally recognized stock exchange."
Petrolia said its board of directors will seek shareholder approval in the coming weeks.
In May of this year, Bow announced the closing of its acquisitions from Bukit Energy Inc., a private Canadian company.
The acquisitions result in Bow acquiring interests in four production sharing contracts (PSCs) and one non-conventional joint study agreement (JSA), all interests are located onshore in Sumatra.
The company?s wholly owned subsidiary, Bow Energy International Holdings Ltd.,(BEIH) acquired all of Bukit?s shareholding interests in five of its wholly-owned Singapore holding companies, which own the following interests in the conventional and non-conventional PSCs and non-conventional JSA:
? Bohorok PSC (conventional) ? operated 50% participating interest, 465,266 net acres
? Palmerah Baru PSC (conventional) ? operated 54% participating interest, 98,977 net acres
? Palmerah Deep PSC (non-conventional)- operated 69.36% participating interest, 170,398 net acres
? Mahato PSC (conventional)- 20% participating interest, 167,115 net acres
? Bohorok Deep (non-conventional)- 20.25% participating interest in a JSA
All of the interests are adjacent to producing oil and gas fields and near existing infrastructure.
Editing by Reiner Simanjuntak