Perisson Petroleum Corp. Announces Third Quarter Financial Results and Clarifies Settlement of Guarantee Obligation
CALGARY, ALBERTA--(Marketwired - Nov. 30, 2015) - Perisson Petroleum Corporation ("Perisson" or the "Company") (CSE:POG) is pleased to report its financial results for the third quarter and nine months ended September 30, 2015. Additionally, the Company wishes to provide further clarity to its news releases from September 1 and September 17 relating to the satisfaction of guarantee funds necessary for the acquisition and maintenance of the Company's VMM-17 exploration block in Colombia (the "Guarantee").
This is a difficult time for the world's oil and gas producers and low oil prices are expected to persist for the next few quarters. While today's industry-wide difficulties may not directly impact Perisson, the Company has undertaken several steps to eliminate any excessive or unnecessary costs and continues to make cost improvements, resulting primarily from a change of management and moving the head office from Montreal to Calgary.
The table below summarizes the Q3 2015 financial and operating results for the Company.
|All amounts shown in US$
||Three months ended
|Nine months ended
|Professional and consulting fees
|Accommodation and travel
|Office and general
|Settlement with shareholder
|Loss and comprehensive loss
In 2009, Mr. Gary Chen, Chief Executive Officer of the Corporation, provided funding in the amount of USD$900,000 (the "Guarantee Funds") for the purposes of posting, on behalf of the Corporation, guarantee funds necessary for the acquisition and maintenance of the Company's VMM-17 exploration block in Colombia. In 2013, the Company and Mr. Chen came to an understanding whereby Mr. Chen assigned the Guarantee Funds to the Company following which the Company and Mr. Chen would approach the former shareholders of Igual Holdings who had received Perisson shares as part of the Company's RTO transaction in 2012 for offsetting share compensation. Upon review of the matter, it became apparent to the board of directors of the Company that the offsetting share compensation was never received and it was a reasonable determination that such compensation would now be impossible to accomplish. As such, it was determined that compensation to Mr. Chen in an amount equal to the original principal amount of the Guarantee Funds was warranted.
These funds were repaid from part of the proceeds of the Company's September financing, as disclosed in the Company's September 1, 2015 press release relating to the funding of the Guarantee. The settlement funds have been accounted for as an expense in the Company's September 30, 2015 interim financial statements.
About Perisson Petroleum Corporation
Perisson Petroleum Corporation holds a 100% working interest in 39,927 hectares (almost 100,000 acres) known as the VMM-17 block, a license located in the prolific, stable, oil-producing region of the Middle Magdalena Basin in central Colombia. The Corporation's objectives are to explore, exploit and produce oil from the relatively shallow reservoirs believed to be within the VMM-17 block.
This news release includes certain information, with management's assessment of Perisson's future plans and operations, and contains forward-looking statements which may include some or all of the following: (i) anticipated production rates; (ii) expected results of capital programs; (iii) expected timelines for production optimization; (iv) net debt levels; (v) anticipated operating costs; and (vi) expected capital projects and associated spending; which are provided to allow investors to better understand the Company's business. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Perisson's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, changes in environmental tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, and other risks and uncertainties described under the heading 'Risk Factors' and elsewhere in the Company's Management Discussion and Analysis and other documents filed with Canadian provincial securities authorities and are available to the public at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The principal assumptions Perisson has made includes security of land interests; drilling cost stability; finance and debt markets continuing to be receptive to financing the Company, the ability of the Company to monetize non-core assets and industry standard rates of geologic and operational success. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Perisson disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Source: Marketwired (Canada)
(November 30, 2015 - 8:15 PM EST)
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