Oil Optimization Announces Signing of Letter Of Intent to Fund Two Well Drilling Program Onshore Thailand
01 May 2014 - 10:30PM
Access Wire
BANGKOK, THAILAND / ACCESSWIRE / May 1, 2014 / Oil Optimization
Inc. (TSXV : OOI) (the "Company") announced today that it has
entered into an arms-length letter of intent under which a
strategic investor, with exploration and production experience,
proposes to acquire an indirect 43% interest in the Company's
petroleum concession L14/50 onshore Thailand by subscribing for
shares to be issued by Red Stag Resources (BVI) Limited, a
100%-owned subsidiary of the Company, for a subscription price of
US$ 2,340,000.
The proceeds would be used to drill, complete and test two wells
on targets already identified on the Company's petroleum concession
and to acquire additional seismic data if necessary. The proceeds
would cover the Company's entire share of costs of such a drilling
program and a portion of the seismic data expense. The proposed
transaction is subject to, among other things, the execution of a
definitive agreement and the approval of the TSX Venture Exchange.
The parties expect to finalize a definitive agreement by June 15,
2014 and the Company will report on the progress of that agreement
in due course.
Luc Desmarais, the Company's CEO stated that: "Following closely
with the Thai Ministry of Energy's three-year extension of our
petroleum concession agreement with an option for a further three
years, and the formal submission of our final environmental impact
assessment report to the Office of Environmental Policy and
Planning, we are delighted about the prospects of teaming up with
an investment group with established credentials in oil & gas
exploration and production to advance our discovery program and
initiate a drilling campaign on the previously undrilled northern
portion of the hydrocarbon-rich Phetchabun basin".
About Oil Optimization Inc.
Oil Optimization Inc. is an international junior oil and gas
exploration company headquartered in Canada with operations in
Thailand. The Company owns the long-term exclusive rights to
onshore Block L14-50, which is subject to a farm-out agreement with
Rockstone Petroleum Limited. The one million acre concession covers
the entire northern section of the hydrocarbon-rich Phetchabun
basin in central Thailand, which has been subject to a 200-line
kilometer 2D seismic acquisition program and an extensive magnetic
survey. The southern section of the basin is currently being
developed by China's ECO Orient Energy Ltd (60%) (a wholly-owned
subsidiary of the Hong Kong and China Gas Company Limited),
Australia's Carnarvon Petroleum Limited (20%) and by Loyz Energy
Limited (20%) of Singapore.
Forward-Looking Statements
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this news release contains forward-looking statements
and information concerning the expected activities of Oil
Optimization. The forward-looking statements and information are
based on certain key expectations and assumptions made by Oil
Optimization. Although Oil Optimization believes that the
expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward looking statements and
information because Oil Optimization can give no assurance that
they will prove to be correct. By its nature, such forward-looking
information is subject to various risks and uncertainties, which
could cause the actual results and expectations to differ
materially from the anticipated results or expectations expressed.
Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date hereof,
and to not use such forward-looking information for anything other
than its intended purpose. Oil Optimization undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law.
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.
Contact:
Luc Desmarais
President & CEO
Email: ir@oilop.com
Website: www.oilop.com
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY
AND IS NOT AUTHORIZED FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
SOURCE: Oil Optimization Inc.
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