CALGARY, Alberta, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has closed its acquisition of certain non-operated working interest assets in its Swan Hills, Alberta core region (the “Assets”) for a total purchase price of $5 million cash, subject to certain closing adjustments (the “Acquisition”) as previously announced in its August 4, 2021 press release.
The Acquisition was funded by Arena Investors, LP (“Arena”) by way of an amended term loan agreement. Arena is an institutional asset manager with US$2.2 billion of committed assets under management that specializes in providing innovative capital solutions for middle market companies.
The Acquisition enables Razor to cost-effectively add long-life, industry-leading ten percent annual base decline, low-risk, light oil reserves (41o API), production and cash flow underpinned by an improving commodity price environment as crude oil supply/demand returns to balance.
Meanwhile, FutEra Power Corp. (“FutEra”), a subsidiary of Razor, continues construction on our first-of-its-kind Swan Hills Geothermal Project. FutEra is currently reviewing additional projects including solar, wind and well-head geothermal. In addition, FutEra recently commissioned its wholly owned 10 petahash bitcoin mining operation which includes supplying self-generated power and the mining installation. As well, Razor has now completed construction on its Virginia Hills Soil Treatment Facility which will be operational in the third quarter of 2021.
Razor and FutEra continue to identify and capture opportunities to liberate alternative sources of energy while measurably improving the environmental and social impacts of our business.
Further information with respect to this acquisition, Razor’s conventional oil and gas operations and FutEra’s geothermal and ongoing innovative projects may be found in our updated corporate presentation found on www.razor-energy.com.
FutEra Adopts Stock Option Plan
The Company also announces today that the board of directors has approved the adoption of a fixed stock option plan (the “FutEra Option Plan”) for FutEra.
Under the FutEra Option Plan, FutEra may grant options to acquire up to an aggregate of 284,000 common shares of FutEra (each a “FutEra Share”), subject to the terms of the FutEra Option Plan and applicable securities laws. It is anticipated that the options will be granted by the board of directors of FutEra (the “FutEra Board”) to certain officers and employees of FutEra for both retention purposes and in recognition of their continuing efforts in assisting FutEra to become a leader in Alberta clean power generation by evolving existing assets with new and innovative solutions. Once granted, the options will be subject to vesting conditions as determined by the FutEra Board, including an anticipated term of five years from the date of issuance.
The FutEra Option Plan remains subject to approval by the TSX Venture Exchange.