VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 22, 2014) -Petro One Energy Corp. (TSX VENTURE:POP)(FRANKFURT:C6K1) reported on October 8, 2014 that it had closed a private placement of $3,260,842.75 on October 7, 2014 and that it had received confirmation from Korea Myanmar Development Company Ltd. ("KMDC") that that KMDC intended to wire the balance of the funds owing to fulfill its contractual obligations in respect of the non-brokered private placement announced on July 28, 2014 ("PP#1") within the next 14 days. The Company had not received those funds as of the close of business on October 21, 2014. Instead, the Company received an email from KMDC which suggests that additional time will be required for KMDC to meet its funding obligation.
The Company does not propose to grant any further extensions. KMDC remains contractually obligated for the balance of PP#1 and, in addition, to advance $14,000,000 to the Company not later than November 7, 2014 for the drilling fund provided for in the July 25, 2014 Earning and Joint Venture Agreement. KMDC has not met its obligations relating to PP#1, but its obligation to advance $14,000,000 for the drilling fund has not yet fallen due. Management has considered the Company's position at length and has determined it to be in the best interests of the Company and the Company's shareholders to wait until the November 7, 2014 deadline for all of the KMDC funding has passed before determining the most appropriate course of action. Management will to make decisions regarding the Company's future dealings with KMDC on the basis of facts as they exist at that time.
In the meantime, management will continue to focus on the development of the Company's assets - in particular the planned horizontal earning well near Milton, in western Saskatchewan, and a production test on the previously drilled Well SR-1 at South Reston, Manitoba, as reported on October 8, 2014. The Company will also continue to assess the potential for a further financing by way of private placement or joint venture with persons unrelated to KMDC.
The Company notes that references in prior news releases to November 5, 2014 as the deadline for funding by KMDC were due to an arithmetical error, and confirms that November 7, 2014 is the correct date, being the 105th day after the date of the KMDC Agreement. The Company also notes that its October 8, 2014 press release inadvertently overstated by a nominal amount the finder's fee paid to Aberdeen Gould Capital Markets Ltd. as well as the exercise price of the finder's warrants. The Company paid $254,867.42 in cash and issued 1,019,470 finder's warrants to Aberdeen. Each finder's warrant is exercisable to purchase one share at the price of $0.25 until October 7, 2016, subject to acceleration at the Company's option if its shares close at $2.00 or higher for ten (10) consecutive trading days at any time after four months after Closing.
The Company will report on further developments as they occur.
ON BEHALF OF THE BOARD
Peter Bryant, President & Director
For further information, please visit the company's website at PetroOneEnergy.com, follow the Company's tweets at Twitter.com/PetroOneEnergy and contact Jeff Stuart of King James Capital Corporation, handling Investor Relations for the Company, by telephone at (604) 805 0375 or by email at jstuart@kingjamescapital.com.