HORIZON PETROLEUM LTD.
Suite 1500 – 700 4th Ave S.W.
Calgary, AB, Canada T2P 3J4
Horizon Petroleum Ltd. (the “Company” or “Horizon”) (TSXV: HPL) is pleased to provide the following update to its shareholders:
Transaction with PMI Resources Ltd.
As previously disclosed, at the annual general meeting of shareholders held on March 14, 2017, shareholders of Horizon approved the creation of a Control Position, which Control Position is anticipated to be held by PMI Resources Ltd. (“PMI”), as a result of the expected issuance of 75,000,000 common shares of the Company at a price of $0.02 per common share for a gross proceeds of $1,500,000 (the “PMI Placement”). The Private Placement is in connection with the share purchase agreement (the “Share Purchase Agreement”, or “SPA”) dated February 17, 2017 where, upon closing, PMI would assign its 100% working interest in two hydrocarbons licenses in southwest France known as Ledeuix and Ger, and consisting of approximately 171,520 acres (the “Assignment”).
The PMI Placement is part of a larger placement completed by HPL (the “Private Placement”), whereby the Company previously closed on tranches of $1,819,295 and $206,600, for total gross proceeds of $2,025,895, through the issuance of 101,294,750 common shares. Including the completion of the PMI Placement with PMI, total gross proceeds of $3,525,895 will have been received, through the issuance of 176,294,750 common shares (on a pre-consolidated basis).
Horizon is awaiting approval of government authorities in France, to the Assignment. Once this approval has been attained, the Company will close on the Assignment, and on the $1,500,000 investment from PMI.
The TSX Venture Exchange (the “TSXV”) has granted conditional approval of the Assignment and the Private Placement.
The Company has engaged a Calgary-based, independent engineering consultant, Apex Energy Consultants, to complete an NI 51-101 compliant resource evaluation report for the Saucede natural gas discovery on the Ledeuix permit.
The PMI transaction represents a first step by Horizon in executing its strategy to acquire and develop existing, conventional oil & gas discoveries in Europe. Management has screened a number of potential opportunities and has focused on two to three opportunities that meet the Company’s strategic criteria, with significant undeveloped natural gas resources in attractive gas markets. The Company has entered into negotiations and expects to enter into definitive agreements in the near-term; details will be announced as soon as possible.
At the annual general meeting of shareholders held on March 14, 2017, shareholders approved the consolidation of the Company’s outstanding shares, where at present Horizon has determined to complete on a 6-for-1 basis, or such other lesser ratio as may be acceptable to the policies of the TSXV. Horizon currently has 151,663,654 common shares outstanding; assuming that every six (6) common shares before consolidation would be exchanged for one (1) common share (the “Consolidation”) upon completion of the Consolidation, the Company would have 25,277,276 common shares outstanding. The Company is in the process of making its final submission to the TSXV, and will issue a news release, as per the policies of the TSXV, advising of the effective date and final terms of the Consolidation.
About Horizon Petroleum Ltd.
Calgary-based Horizon is focused on the appraisal and development of oil & gas resources internationally. The Management and Board of Horizon consist of oil & gas professionals with significant international experience.
For further information about the Company, please contact:
Dr. David Winter
President & CEO
+1 403 619 2957
David R. Robinson
VP Business Development
+1 403 399-9047
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.
This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the completion of the Private Placement, the Appointment and the Assignment as well as any future development activities or changes to the estimated abandonment liability.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon and described in the forward-looking information contained in this press release.
Although Horizon believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.