NEWS RELEASE | Monday, October 30th, 2017
Cerus Energy Corp. (“Cerus” or the “Corporation”) (CEA:TSX-V) announces that the planned “Spud Date” for the first Test Well in the Phase 1 Drilling Program located in the Pennant Area, S.W. Saskatchewan, is expected to be on or before November 14, 2017. As described in previous news releases the Phase 1 Drilling Program in The Pennant Area, S.W. Saskatchewan consists of seven (7) earning wells to be drilled and completed by Cerus on or before December 31, 2017.
Cerus has funded its initial commitments under the previously announced CWI Interest Agreement with Vital Energy Inc. (VUX:TSX-V) through Lomac Canada’s syndicate to a non- arm’s length syndicate member. The syndicate is participating directly in the CWI on a retained 160% penalty as previously released in a news release dated August 2, 2017.
Under the terms of the agreement and upon Cerus fulfilling its Phase 1 obligations to Vital Energy Inc., Cerus has granted the syndicated funder the first right of refusal to fund additional “Phases” of development drilling on the balance of Vital’s Pennant Area, S.W. Saskatchewan project lands ( approximately 8,580 gross and net acres). The first Right of Refusal will be on the same terms and conditions as the initial commitment.
Under the terms of the CWI Agreement with Vital, Cerus or the syndicate will place the initial Test Well funds on deposit with Vital 1 week prior to the initial Test Well spud date.
Cerus will retain a 20% tailing margin and the retention of the 5% GORR as per the terms and conditions of the CWI Agreement between Cerus and Vital Energy Inc.
To date and in preparation to commence the Phase 1 drilling program, Vital Energy Inc. has acquired four (4) surface leases on four (4) pad drilling sites. Each pad drilling site can accommodate four (4) wells. Seven (7) drilling licenses have been acquired and two (2) of the four (4) multi well drilling pads have been constructed. The remaining two (2) drilling pads are in the process of being constructed.
About Cerus Energy Group
Cerus Energy Group is a Tier 2 Canadian-based oil and gas exploration company trading on the TSX Venture Exchange with property assets in both Alberta and Saskatchewan.
About Cerus Energy Group's Subsidiary Companies
Texalta Industries Ltd. and Lomac Canada Ltd. are wholly owned subsidiary company's serving various sectors of the oil and gas industry in the Province of Alberta. Maverick Northstar is a private joint venture company between Petrostar Petroleum Corp. of Alberta, Canada and Maverick Synfuels Inc of North Carolina, USA. Maverick Northstar is a chemical processing company focused on improving the value of methane through the production and utilization of methanol in Western Canada located in the province of Alberta. Petrostar holds 60% ownership of Maverick Northstar shares. For further information, please contact:
Mackenzie Loree, CEO
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Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.
When relying on forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION ON AT ANY PARTICULAR TIME.