Houston, Texas--(Newsfile Corp. - August 31, 2018) - Hunter Oil Corp. (TSXV: HOC) (OTCQX: HOILF) (the "Company") is pleased to announce that it has closed the sale of substantially all of its oil and gas operations (the "Assets") to Pacific Energy Development Corp. (the "Purchaser"), a Nevada corporation and a wholly-owned subsidiary of PEDEVCO Corp., an arm's length, California-based oil and gas company (the "Transaction"), previously announced on August 1, 2018.
The aggregate purchase price paid for the Assets was USD $21,315,636 (the "Purchase Price"), being approximately CAD $27,710,327. In addition, the Purchaser assumed all of the long-term liabilities being the asset retirement obligations associated with the oil and gas leases.
"After securing managerial control of Hunter in Q1 of 2015, I assembled a team of nimble and efficient industry professionals to develop the portfolio of highly distressed assets into a turn-key, horizontal San Andres targeted drilling opportunity. This transaction monetizes our efforts of the past three years, and I am especially pleased to have generated a significant return for the shareholders who supported us throughout," said Andrew Hromyk, Executive Chairman.
The Company expects to distribute its available cash (less USD $2,500,000 for working capital) to its shareholders as a return of capital distribution (the "Distribution"). The Company plans to announce the record date and mechanics for the Distribution as soon as possible.
All figures herein assume a USD/CAD exchange rate of 1.30.
Following completion of the Distribution, the Company plans to seek to locate, evaluate and, where advisable, negotiate to acquire interests in additional oil and gas properties. There is no guarantee that the Company will be able to identify suitable oil and gas prospects, or that the Company will be able to negotiate acceptable terms for any prospects that it identifies. The TSXV may transfer the Company to the NEX, a separate board of the TSXV, if the Company fails to meet the ongoing minimum listing requirements of the TSXV.
ON BEHALF OF THE BOARD OF DIRECTORS
Andrew Hromyk
Executive Chairman
(604) 689-3355
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Cautionary Statement Regarding Forward-Looking Information
Certain information provided in this press release constitutes forward-looking statements and information within the meaning of applicable securities laws. Specifically, and without limitation, this press release contains forward-looking statements and information relating to the timing of Distribution and the Company's future plans. Forward-looking information typically contains statements with words such as "anticipate", "believe", "forecast", expect", "plan", "intend", "estimate", "propose", "project", or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward-looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company. In respect of the forward-looking statements and information set out in this new release, the Company has provided such in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the process and timing for the Distribution and the number of Shares outstanding at the time of the Distribution, as well as assumptions associated with the due bills process generally. There are many risk factors associated with the timing of the Distribution payable to Shareholders. The Exchange may also transfer the Company to the NEX. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to additional regulatory or legal approvals required for the Distribution, the due bills process of the Exchange, the estimated future expenses of the Company, regulation of the Company's business, state of the public markets, and global economic conditions, among other things. In addition, while the plans to locate, evaluate and where advisable negotiate to acquire interests in additional oil and gas properties, there are no guarantees that the Company will be able to identify suitable oil and gas prospects, or that the Company will be able to negotiate acceptable terms for any prospects that it identifies.
The Company cautions readers that this list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. There can be no assurance that the actual results, performance, events or activities anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. Readers are urged to consider these factors carefully in evaluating forward-looking information and forward-looking statements and are cautioned not to place undue reliance on any forward-looking information or forward-looking statements. The forward-looking statements and forward-looking information are made as of the date hereof, and the Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements and forward-looking information contained herein to reflect future results, events or developments. You should also carefully consider the matters discussed under "Risk Factors" in the Company's management's discussion and analysis filed on SEDAR at www.sedar.com.
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