Point Loma Resources announces closing of joint venture funding deal with Salt Bush Energy
May 23, 2017
5.00 Million CAD
On May 23, 2017, Point Loma Resources Ltd. closed the previously announced disposition ("Disposition") and joint venture ("JV") with Transerv Energy Ltd. via its Canadian subsidiary Salt Bush Energy Ltd. The Disposition consists of Point Loma selling and assigning a 20% working interest in its assets to Salt Bush for consideration of C$4.17 million cash and C$0.83 million additional capital commitment and the creation of a strategic JV.
Point Loma and Salt Bush will proceed forward on the basis of a working interest relationship of 80% Point Loma and 20% Salt Bush. An initial capital budget of C$5 million through the third quarter of 2017 will be allocated to the drilling of development wells and construction of facilities that will optimize field operating and activate additional production and target area acquisitions. Point Loma and Salt Bush will also become strategic partners in further oil and gas ventures.
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta.
McCarthy Tétrault LLP advised Point Loma with a team led by Gordon Cameron that included Jeremy Busch-Howell and Kristen Haines.