Petro One Energy Corp CUDBF

KMDC Confirms $100 Million for Petro One Energy Corporation

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https://www.midasletter.com/2014/09/kmdc-confirms-100-million-dollar-investment-in-petro-one-energy-tsx-vpop/

KMDC Confirms $100 Million for Petro One Energy (TSX.V:POP)

Written By: James West

September 2, 2014

Petro One Energy Corp. (TSX.V:POP) recently announced that Korean Myanmar Development Corporation, a Korean sovereign-wealth backed investment firm, would invest ‘up to $100 million’ in Petro One’s drill program of up to 97 wells in the Western Canadian Sedimentary Basin. In an interview published in the Korean daily Korean Securities Daily News earlier today and translated from Korean here, the Chairman of KDMC stated that his company was going definitely to be investing $100 million in the company.

The world’s oil reserves are gradually being depleted, and as such, there is worldwide competition for oil development. Representatives of OPEC are just one of many who are competing to get into developing resources, in order to grow the future of energy. Oil development can play a significant role in a nation’s economy. KMDC was the first Korean company to invest in equity and developing oil fields. The following is a Q&A session with Chairman Lee Young-Soo of KMDC.

KS Daily: Congratulations on the Joint Venture Agreement.

Lee Young-Soo: There is a global energy war. Many emerging countries are focusing on the oil business; for example, China is investing huge capital to secure oil fields and developing resources. While emerging countries must rely on monetary investments to secure oil business, large national oil companies are able to rely on their own skills and past experience. Korea is only now beginning to break into the oil business, and our company’s venture is a matter of national interest. After failing business in Myanmar, we are now moving forward with Canadian companies.

KS Daily: What was the agreement with Petro One?

Lee Young-Soo: KMDC will develop oil fields in southern Saskatchewan and Manitoba. A formal contract was signed with Petro One on July 28 in Seoul. Petro One is a junior oil development company that has recruited retired geologists and technicians from Exxon Mobil. The company has a wealth of experience in the oil development industry. KMDC will develop oil fields in southern Saskatchewan and Manitoba. A formal contract was signed with Petro One on July 28 in Seoul. Petro One is a junior oil development company that has recruited retired geologists and technicians from Exxon Mobil. The company has a wealth of experience in the oil development industry.

KS Daily: What is the direction of the business?

Lee Young-Soo: $100 million will be invested. Revenue shares will be 65:35 until the Pay Out; after Pay Out, revenue will be shared 50:50. $3 million will be invested in equity. Petro One is trading at 49 cents, but we have purchased at 25 cents. Looking at this, it is already successful.

KS Daily: What is the potential profit?

Lee Young-Soo: In Phase 1, we will be drilling 12 wells that are between 300 to 1000m away from other producing wells. Those wells are producing 200 to 500 barrels per day, and therefore we can expect similar numbers or higher.