NEWS RELEASE | Tuesday, November 14th, 2017
November 15th, 2017 - Calgary, Alberta
Drilling of First Well Underway at Pennant, SW Sask. Project
The Company kicked off its inaugural DFP development in the first half of November. The 101/14-15-18-17W3 location was "spudded" on November 13th , 2017. The Company anticipates the reviewing of production results by end of the month.
The company funded the program through the LOMAC Syndicate Program to a non-arm’s length financier. The financier will retain 160% of the total 180% Penalty Payout on the Pennant, Saskatchewan Play. The tailing 20% and 5% GORR with be retained by Cerus as an earned margin and retained royalty.
The first well will be drilled, completed and evaluated before the program is continued. The Company based its internal cash flow models on 100 bbl/d for a successful program yield. The Company remains optimistic that the test results will validate significant upside to the company’s benchmark for success which is aided by the current US exchange rate and price of WTI.
Announcing By-Monthly Corporate & Project Update
The objective of Cerus Energy Group (TSX-V:CEA) is to build a premier energy portfolio of development interest through its proprietary CWI (Carried Working Interest) capitalization structure.
Strategy / Investment Process
Cerus uses a formal Development Finance Program (or DFP) structure to enhance the management and placement of investment capital. Our Finance Program is suitable for long and short-term capital projects with the capability of retained expansion through the provision of rolling development options. The DFP both uses and optimizes a series of revenue sharing mechanisms to recover investment capital and associated fees from inner corporate investments.
|New Wells Spudded||1|
|New Wells Completed||0|
|Wells in active paying out||0|
|Drill sites under obligation||7|
|Current drill commitment||CAD $10,500,000|
|Locations under option||104|
|MOODY's rating||No rating at this time|
|S&P Rating||No rating at this time|
|NOVEMBER 13th 2017 – ONE YEAR TRADING CHART (YTD)|
*The performance highlighted is past performance and is not a guarantee of future results. Energy companies are subject to certain market risks and the information contained is believed to be accurate at the date of presentation. Investment performance and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. Further explanation: 1. Current Drill Commitments: Are the number of locations required to meet commitments outlined in active CWI agreements. 2. Locations Under Option: Identified locations that are in addition to the CWI primary commitment that the company has the option to develop post primary commitment completion. 3. CWI: is an Cerus developed Carried Working Interest for the purpose of oil and gas participation and funding. Additional information can be obtained from www.cerusenergy.com or call 1-877-837-8864.
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
Neither the 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.
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.