Calgary, Alberta – TheNewswire - August 16th 2021 – Petro Viking Energy Inc. (“Petro Viking” or the “Company”) (CNSX:VIK.CN) (CNSX:VIK.V.CN) is pleased to provide a Corporate update on the closing of the asset purchase of 100% of Avila Energy’s interests in 53,835 Acres, 43,935 Acres (Net), of mineral rights, associated wells, pipelines and facilities for $50,664,000.
As part of the previously announced binding agreement for the acquisition on June 14th, 2021, after waiving all further due diligence, Leonard Van Betuw accepted on July 14th 2021 the appointment to become a Director of the Corporation in addition to President and Chief Executive Officer.
Under Mr. Van Betuw’s guidance the Company continues to advance its plans for the full integration of personal and operations in the 3rd quarter in preparation of the closing of the acquisition as previously announced to occur on or before October 31, 2021, and remains only subject to the execution of all related applications and approvals necessary as would be customary within the industry in parallel to submission of all necessary applications and approvals including shareholders and the Canadian Stock Exchange.
As previously announced, the Purchase Price for the Acquisition is being satisfied by way of the issuance of 40,440,000 Class A common shares (the “Common Shares”) at $0.60 per share and 30,000,000 convertible preferred shares (the “Convertible Shares”) convertible at a price of $0.80 per share. The Convertible Shares shall have a term of five years (5) and earn an accruing annual dividend at a rate of two percent (2%), payable upon conversion. The Conversion of the Convertible Shares at the election of the holder can only occur after one of three milestones has been achieved: a) the Company exceeds the production rate of 3,000 boe/d, b) the Common Shares trade at a volume weighted average price (VWAP) of more than $1.00 per share for twenty (20) consecutive business days or c) the second year anniversary since the issuance of the Common Shares has occurred. At maturity upon the fifth anniversary of their issuance, the Convertible Shares shall automatically be redeemed on a 1:1 basis along with any accrued dividends by the issuance of Common shares.
Leonard Van Betuw, newly appointed President and CEO commented, “I am very pleased with the progress we have made in recent weeks and the talented team that in the future; upon the completion of the name change will continue to trade under the symbol VIK and be known as Avila Energy. We look forward to receiving the upcoming approval of the Shareholders of Petro Viking Energy Inc. in advance of the closing of the Acquisition.”
“Currently the industry is experiencing mixed signals; the tailwinds of strong commodity prices and the headwinds of moral obligations to humanity. The Company’s contribution is to be a responsible supplier of energy that fuels economic growth in a manner that provides an unwavering path forward that addresses head-on the extensive transitionary pressures to adapt to ever-changing social policies.”
Mr. Van Betuw stated. “Avila Energy’s team understands these obligations, embracing both the challenges and the opportunities that are a result of these forces; with a common goal of being recognized for its sustainable growth as an integrated low cost Carbon Neutral Energy Producer. The Company intends to achieve this by continuing to build from the foundation it has formed to date with future growth coming through the implementation of proven techniques within its operations. The fully integrated application of a combination of proven Conventional Production, Power Generation, Carbon Capture, Processing and CO2 Sequestration techniques within its expanding land based of historically defined Petroleum and Natural Gas Reserves. In General a supplier of Energy that is known for making economical investments in the energy sector that remains in demand and recognized for its association with Best Practice’s.”
About Petro Viking Energy Inc.
The Company is an Emerging CSE listed corporation (‘VIK’), and currently in combination with its licensed Joint Venture partner Avila Energy is a producer, explorer, and developer of Energy in Canada. As a low cost Carbon Neutral Energy Producer in 2022 the Company will continue to achieve its results by focusing on the application of a combination of proven geological, geophysical, engineering, and production techniques.
For further information, please contact: Lars Glimhagen, CFO Peter Nesveda, Vice President of Corporate Affairs and Investor relations, or Leonard B. Van Betuw, President and CEO.
Leonard B. Van Betuw
President & CEO
Cautionary Statement Forward-Looking Information:
This news release contains forward-looking statements relating to the future operations of the Company 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 the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company’s forward-looking information. Important factors that could cause actual results to differ materially from the Company’s expectations also include risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking 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 and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking 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 expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.
BOE presentation: Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.
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