Point Loma Resources Ltd. (TSX VENTURE: PLX) (the "Corporation" or "Point Loma") is pleased to announce the signing of a binding term sheet to enter into a disposition ("Disposition") and joint venture ("JV") with Transerv Energy Ltd. (ASX: TSV) via its Canadian subsidiary Salt Bush Energy Ltd. ("Salt Bush"). Highlights of the transaction are summarized below:
Point Loma Salt Bush Joint Venture
In establishing this JV Point Loma has attracted a strategic partner that will allow Point Loma to accelerate currently identified opportunities and additional capital options to pursue opportunities in the core focus area of west central Alberta. Point Loma has been able to acquire certain assets for accretive terms in the region and this transaction will inject capital to activate additional acquired production previously suspended and to expand the Corporation's drilling program.
Closing of the JV transaction is anticipated prior to June 9, 2017 and is subject to a number of closing conditions, including satisfying due diligence review, regulatory approvals and completion of definitive agreements.
Current production of approximately 900 boe/d is anticipated to ultimately increase with the deployment of the proceeds through certain identified acquisitions, development drilling and new pool drilling opportunities.
Point Loma is pleased to establish this relationship with the Transerv group that was instrumental in the initial stages of Point Loma's predecessor companies. This will add strength to our capital support and the potential to seek opportunities that may previously have gone untapped.
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma's business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma's website at www.pointloma.ca or Point Loma's profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
SOURCE: Point Loma Resources Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.