Exercise of Warrants

RNS Number : 4606K

PetroTal Corp.

28 August 2019

 

Exercise of Warrants

Calgary and Houston - August 28, 2019-PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL and AIM: PTAL), makes the following announcement:

As announced by the Company on November 9, 2017, and as detailed in the Company's AIM Admission Document, it issued 2,086,500 warrants to a syndicate of investment dealers co-led by Eight Capital Ltd and Pareto Securities AS and includes PillarFour Securities Inc. (the "Agents") in connection with the brokered private placement, which raised gross proceeds of $34 million, arranged by the Agents (the "Agent Compensation Warrants").

The Company now announces that it received an exercise notice for the exercise of warrants over 1,126,710 Common Shares at a price of $0.187 per Common Share (the "Warrant Exercise") on 12 June 2019 from the Agents in respect of the Agent Compensation Warrants. Accordingly, PetroTal received $210,694 in respect of Warrant Exercise and issued new Common Shares ("Warrant Shares") to the Agents. The remainder of the Agent Compensation Warrants expired on June 12, 2019. Accordingly, the Agents hold no further warrants.

Application has been made for admission of the, in aggregate, 1,126,710 Warrant Shares, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"). It is expected that Admission will become effective and trading will commence at 8.00 a.m. on 3 September 2019.

Following Admission, the Company will have 672,196,034 Common Shares in issue and there are no shares held in treasury. For the purposes of the Disclosure Guidance and Transparency Rules, the total number of voting rights in the Company is calculated as the number of outstanding Common Shares, less the Common Shares not able to be voted on due to restrictions applicable to certain holders which results in a total voting rights figure of 627,754,844. This figure may be used by shareholders as the denominator for the calculations by which they determine if they are required to notify their interest in, or a change of their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

For further information, please contact:

Greg Smith

Executive Vice President and Chief Financial Officer

[e-mail]

T: [phone]

Manolo Zuniga

President and Chief Executive Officer

[e-mail]

T: [phone] Mark Antelme / Jimmy Lea Celicourt Communications (Financial PR) [e-mail] T: 44 (0) 20 8434 2754 James Spinney / Ritchie Balmer / Eric Allan Strand Hanson Limited (Nominated & Financial Adviser) T: 44 (0) 207 409 3494 John Prior / Emily Morris / George Price Numis Securities Limited (Joint Broker) T: [phone] Jonathan Wright / Hugh R. Sanderson GMP FirstEnergy (Joint Broker) T: [phone]

READER ADVISORIES 

FORWARD-LOOKING STATEMENTS: This press release may contain certain statements that may be deemed to be forward-looking statements. Such statements relate to possible future events, including, but not limited to: PetroTal's business strategy, objectives, strength and focus; drilling, completion and workover activities of oil producing and water disposal wells and the results and timing of such activities; the use of an ESP to optimize well productivity; transportation activities; the ability of the Company to achieve drilling success consistent with management's expectations; anticipated future production; engaging a partner to drill the Osheki prospect; exit production in 2019; and future development and growth prospects. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "estimate", "potential", "will", "should", "continue", "may", "objective" and similar expressions. The forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the ability of existing infrastructure to deliver production and the anticipated capital expenditures associated therewith, reservoir characteristics, recovery factor, exploration upside, prevailing commodity prices and the actual prices received for PetroTal's products, the availability and performance of drilling rigs, facilities, pipelines, other oilfield services and skilled labour, royalty regimes and exchange rates, the application of regulatory and licensing requirements, the accuracy of PetroTal's geological interpretation of its drilling and land opportunities, current legislation, receipt of required regulatory approval, the success of future drilling and development activities, the performance of new wells, the Company's growth strategy, general economic conditions and availability of required equipment and services. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety and environmental risks), commodity price and exchange rate fluctuations, legal, political and economic instability in Peru, access to transportation routes and markets for the Company's production, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Please refer to the risk factors identified in the Company's annual information form for the year ended December 31, 2018 and management's discussion and analysis for the three months ended March 31, 2019 which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS INFORMATION: References in this press release to production test rates, initial test production rates, and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for PetroTal. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary.

FOFI DISCLOSURE: This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about PetroTal's prospective results of operations, production, balance sheet, growth and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was included for the purpose of providing further information about PetroTal's anticipated future business operations. PetroTal disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. All FOFI contained in this press release complies with the requirements of Canadian securities legislation, including Canadian Securities Administrators' National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.

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 press release.

 

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