Oil Optimization Announces Extension to Letter Of Intent for Two Well Drilling Program Onshore Thailand
02 July 2014 - 10:29PM
Access Wire
BANGKOK, Thailand / ACCESSWIRE
/ July 2, 2014 / Oil Optimization Inc.
(TSXV-OOI) (the "Company")
announced today that further to the news release dated May 1,
2014 announcing the execution of a non-binding letter of intent
dated April 30, 2014 (the "LOI"), the parties thereto have agreed
to extend the date by which definitive agreements are to be
negotiated to September 30, 2014. The Company entered into the
arms-length LOI with a strategic investor, with exploration and
production experience, that proposes to acquire an indirect 43%
interest in the Company's onshore petroleum concession in 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 the expected 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 definitive
agreements and the approval of the TSX Venture Exchange. The
parties expect definitive agreements to be negotiated by September
30, 2014.
About Oil Optimization Inc.
Oil Optimization Inc. is an
international junior oil and gas exploration company based in
Canada with an advanced discovery program onshore Thailand. The
Corporation owns the long-term exclusive rights to onshore Block
L14-50, which is subject to a 22% farm-out agreement. The one
million acre petroleum 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
data 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.
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
Contact:
Luc Desmarais
President & CEO
Email: ir@oilop.com
Website: www.oilop.com
SOURCE: Oil Optimization Inc.
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