HOUSTON, June 9, 2015 /PRNewswire/ -- Virtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or "the Company") today announced that effective May 21, 2015, (the "Closing Date"), it has entered into a definitive securities purchase agreement with Himmil Investments, Ltd. (the "Investor") to raise $1,150,000.
Himmil is a small family fund based in Toronto, Canada. These funds will be primarily used to spud and drill the initial 7,000 foot test well later this summer, and pay in advance Energy Drilling and other parties associated with the forthcoming drilling.
Rupert Ireland, CEO of Virtus, said, "Our near-term capital requirements have been exceeded and we are excited to pursue our drilling and completion operations at the Virtus Lone Pine 34-11-5 exploration well."
Steven Plumb, CFO of Virtus, said, "We hope this deal demonstrates our commitment to drilling the first test well and our commitment to grow value for shareholders. Despite the downturn in commodity prices and the current commodity market, I'm pleased both parties were able to mutually agree on terms."
Bret Murray, COO of Virtus, said, "We are finalizing our Bond with Utah's Bureau of Land Management (BLM) and anticipate receiving our official drilling permit shortly. Virtus is still on track to initiate drilling operations this summer with plans to reach total depth on the 7,000 foot well on its initial well."
The Senior Convertible Notes
The Purchase Agreement provides the Investor shall purchase from Virtus Oil and Gas a senior convertible note with an initial principal amount of $250,000 (the "Initial Convertible). The initial convertible was paid to Virtus Oil and Gas upon closing of the deal. Himmil further agreed to purchase on the 30th Calendar day date after signature of the purchase agreement an additional convertible note for the amount of $250,000. Subsequent to the completion of an S-1 Registration Statement the final tranche of funds will be released to the company.
Full details in regards to the transaction can be found in the 8-K filing with the United States Securities and Exchange Commission filed on May 25, 2015 and on the company website.
Operations Engineer
Virtus Oil and Gas retained the services of Michael Roberts as a Drilling and Completion Operations Engineer. Mr. Roberts has hands-on experience as a heavy equipment operator, driller, rig manager and drilling contractor. He has supervised construction of rig machinery for two major drilling contractors and provided on-site supervisory and engineering operations for drilling and completion of many types of wells, often operating in remote locations and in hostile weather situations.
Mr. Roberts has also drilled two of the longest frontier formation horizontals within the state of Wyoming and successfully installed liners in both wells. Mr Roberts resides in St. George, Utah, which is in close proximity to the Virtus Lone Pine 34-11-5 exploration well.
EDUCATION/CERTIFICATIONS
Bachelor of Science in Engineering: California State University at Long Beach.
Graduate level work: University of Alaska, Anchorage. Engineering Honor Society.
Licensed Professional Engineer in Alaska, Nevada and Wyoming – all licenses active.
Current well control certification: Drilling and Completions: Supervisor Level
About Virtus Oil and Gas Corporation
Virtus Oil and Gas Corp. (VOIL) is a Houston-based oil and gas exploration and production company currently focused on the Parowan Project, a 55,477+/- Acre prospect targeting the Central Utah Thrust Belt. The prospect is situated near recent Utah discoveries, including Wolverine Gas and Oil's Covenant Oil Field, consistent with Virtus' strategy to acquire and develop oil and gas resources in proven, onshore basins in the United States.
Forward-looking Statements
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. The company will need to raise additional financing in order to advance its exploration and drilling program. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Contact:
Virtus Oil and Gas Corporation
1517 San Jacinto Street
Houston, TX 77002
IR Phone: (855) 733-VOIL
IR@virtusoilandgas.com
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SOURCE Virtus Oil and Gas Corporation