June 4, 2018 - 5:00 PM EDT
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Perisson Signs MOU to Acquire a Significant Interest in a Refinery in Hebei, China




Perisson Signs MOU to Acquire a Significant Interest in a Refinery in Hebei, China



Calgary, Alberta (FSCwire) - Perisson Petroleum Corporation (“Perisson” or the “Company”) (TSXV: POG) is pleased to report that on May 31, 2018, it has signed a non-binding Memorandum of Understanding (“MOU”) with Hebei Xinquan Petrochemical Co., Ltd. (“Xinquan”).

 

The MOU confirms that Perisson and Xinquan desire to negotiate the terms of an investment by Perisson into Xinquan in exchange for a controlling interest in Xinquan. The targeted completion of the transaction is for early July and will be subject to due diligence, TSX Venture Exchange and regulatory approvals. A more detailed news release will be issued once a formal deal has been signed and terms are known.

 

Xinquan’s primary asset is a petrochemical refinery (the “Refinery”) and associated tank storage located 8 km inland from Bohai Bay approximately 80 km south of Tianjin, China.

 

Xinquan has a present production capacity of 2.8 million tonnes of lubricant base oil, aromatic hydrocarbons and asphalt. The refinery’s current product production capacity is: Asphalt - 1.5 million tonnes per year, coking - 0.9 million tonnes per year, hydrogenation unit - 0.3 million tonnes per year, desulfurization unit - 0.1 million tonnes per year, Hydrogen production unit – 5,000 M2/h, and a Sulfur unit – 5,000 tonnes per year. An expansion project at the Refinery is planned that will expand the production capacity by 2.1 million tonnes, including 3.5 million tonnes per year of Asphalt, a 1.1 million tonne hydrocracking unit, a 0.8 million tonne hydro-refining device, a 3,500M2/h Hydrogen production unit, and 20,000 tons per year Sulfur unit. This expansion is targeted for completion by the end of 2018 which is anticipated to result in an increase in production capacity to 5.6 million tonnes.

 

With the completion of this acquisition, the Xinquan Refinery will represent a key step in Perisson’s long term plan to become an integrated global oil and gas company. The Xinquan Refinery grows our corporate value chain and will enable additional opportunities at the Tianjin port.  

 

The Company continues to look for suitable oil and gas acquisitions including farm-in candidates as well as associated infrastructure in Canada and the United States to leverage the Company’s access to drilling capital, equipment and expertise.  

 

About Perisson Petroleum Corporation

 

The Corporation has ownership in certain oil and gas producing properties in the Twining area of Alberta, Canada.  The Company also holds a 100% working interest in the VMM-17 block, a license located in the prolific, stable, oil-producing region of the Middle Magdalena Basin in central Colombia.

 

Perisson Petroleum Corporation is listed on the TSX Venture Exchange and trades under the symbol "POG". 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 

Wayne Rousch, President

Direct Line: (403) 827-8597

[email protected]

 

Completion of any Transaction is subject to a number of conditions, including but not limited to, Approval by the Company’s Board of Directors and TSXV acceptance. There can be no assurance that the Transaction will be completed as proposed or at all.

 

FORWARD LOOKING STATEMENTS

 

This news release contains forward-looking statements relating to the timing and completion of the future operations of Perisson 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 proposed Acquisition and the future plans and objectives of Perisson, 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. Important factors that could cause actual results to differ materially from Perisson's expectations are risks detailed from time to time in the filings made by Vela with securities regulations.

 

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.

 

Trading in the securities of Perisson Petroleum Corporation should be considered highly speculative. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.







Source: Perisson Petroleum Corporation (TSX Venture:POG)

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Source: FSCwire (June 4, 2018 - 5:00 PM EDT)

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