TSX-V: ONV
VANCOUVER, Sept. 17, 2018 /CNW/ - Oronova Energy
Inc. ("Oronova" or the "Company") (TSX.V:
ONV) is pleased to announce the engagement of Advantage Energy
Services Ltd. ("AESL") of Calgary,
Alberta. AESL is a consulting group of experts specializing
in acquisitions support and production optimization of oil and gas
assets since 1991.
Over the past 27 years, AESL has created strategic joint
ventures and acquisition strategies to create "value add" of over
$400 million by working existing
assets into greater value situations. Oronova has engaged
AESL to identify strategic oil and gas assets and generate projects
in the Western Canadian Sedimentary Basin that can be leveraged
into high impact plays. AESL has identified a particular new
resource play in Western Canada
which it is pursuing on behalf of Oronova; further information on
this high impact resource play will be released, when
available.
As an example of past successes, in 2005, Earl Hickok, Chairman of AESL, was appointed to
the Board of Directors of Tusk Energy Corporation, and became
President. His team from AESL joined him to help to take TUSK
from 400 barrels per day to over 5,000 barrels per day before
selling the company in 2009.
Mr. David Farrell of Oronova
commented, "Oronova is excited to be working with AESL to
establish a foundation for rapid growth and value creation in the
Canadian upstream oil & gas sector in the coming
months."
The Company is also pleased to announce its plans to complete a
non-brokered private placement for $800,000 through the issuance of 10,000,000
common shares at $0.08 per share (the
"Private Placement"). Oronova intends to use the net proceeds
from the Private Placement for general working capital purposes in
the pursuit of property acquisitions, joint venture arrangements
and land acquisitions. The Company may pay a finder's fee in
connection with the Private Placement in accordance with the rules
and policies of the TSX Venture Exchange ("TSXV").
The securities issued in connection with the Private Placement
will be subject to a four (4) month hold period in accordance with
the TSXV rules and regulations. The closing of the Private
Placement and the payment of any finder's fees are subject to the
approval of the TSXV and any other governing regulatory bodies.
Under the terms of the Memorandum of Understanding ("MOU")
between Oronova and AESL, and subject to closing of a minimum of an
initial $200,000 of the Private
Placement, Oronova will pay a monthly consulting fee to AESL of
$60,000, with the first two months
payable in advance. The consulting services will provide the
required geological, geophysical, engineering and land evaluation
for potential oil and gas prospects within the targeted resource
play in Western Canada. The initial term for the consulting
services will be for six (6) months, with Oronova having the option
to withdraw from receiving the consulting services at the end of
the first two months.
Subject to financing, it is AESL's intention to negotiate and
execute a number of farm-in and option agreements during the
consulting period, through a new company (the "Newco") which has
been established by AESL. Furthermore, assuming AESL has
secured a number of farm-ins, it is the intention that Oronova will
acquire all of the issued and outstanding shares of Newco in return
for 10,000,000 common treasury shares of Oronova, with the release
of the shares subject to performance provisions, and subject to
TSXV and shareholder approval, if required. Upon completion
of the share exchange transaction involving Newco, it is
anticipated that certain members of AESL and/ or Newco will become
officers and/or directors of Oronova.
On behalf of the Board of Oronova Energy Inc.
"David Farrell"
Chief Executive Officer
Cautionary Statement
Neither the TSX Venture
Exchange nor its Regulation Services Provider (as such term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. No
stock exchange, securities commission or other regulatory authority
has approved nor disapproved the information contained
herein.
Forward Looking Statements
This news release
contains forward looking statements relating to the future
operations of the Corporation and other statements that are not
historical facts. Forward Looking Statements are often identified
by terms such as "will", "may", "should", "anticipate", "expects"
and similar expressions. All statements other than statements of
historical fact, included in this release, including, without
limitation, statements regarding future plans and objectives of the
Corporation, are forward looking statements that involve risk and
uncertainties, There can be no assurances that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Corporation's expectations are exploration
risks detailed from time to time in the filings made by the
Corporation within the securities regulations.
The reader is cautioned that assumptions used in the
preparation of any forward looking statements/information may prove
to be incorrect. Events or circumstances may cause actual results
to differ materially from those predicted, as a result of numerous
known or and unknown risks, uncertainties and other factors many of
which are beyond the control of the Corporation. As a result we
cannot guarantee that any forward looking statement will
materialize and the reader is cautioned not to place any undue
reliance on any forward looking statements/information. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward looking
statements contained in this News release are made as of the date
of the release and the Corporation does not undertaken any
obligation to update publicly or to revise any of the included
forward looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by
Canadian securities law.
SOURCE Oronova Energy Inc.
