TORONTO, ONTARIO--(Marketwired - July 21, 2015) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Oil Optimization Inc. (TSX VENTURE:OOI) (the "Company") is pleased to announce the signing of a funding agreement with Singapore-based EP Global Limited ("EPGL"), an experienced group of highly qualified industry professionals focused on identifying undervalued petroleum exploration and production assets.
The terms of the deal call for EPGL to contribute the first US$2,500,000 towards the Company's year-five work commitments on Block L14-50, that consists of one exploration well, acquisition of one hundred line kilometers of seismic data and the completion of a geophysical report, all as stipulated in the Petroleum Concession Agreement initially awarded to the Company on February 8, 2011 by the Thai Ministry of Energy.
Furthermore, EPGL will contribute its portion of historical costs in an amount to be determined, which OOI and Rockstone Petroleum Limited ("RPL") will share on a pro rata basis. On closing of the transaction and upon full satisfaction of any conditions, EPGL will own a seventy percent working interest in the concession, while OOI and RPL will own twenty and ten percent, respectively.
The parties will also enter into a joint operating agreement on closing, when EPGL will be formally appointed project operator and operator of record. The transaction remains subject TSX Venture Exchange approval and the signing of a definitive agreement, on or before August 30, 2015.
In a related development, OOI and RPL have signed a binding settlement agreement based on the deal terms described above and both companies have committed to withdrawing any outstanding claims and counterclaims against the other without condition.
About Oil Optimization Inc.
Oil Optimization Inc. is an international junior oil and gas exploration company based in Canada with an advanced discovery program onshore Thailand. Subject to a Farm-in Agreement, the Company owns a 100% interest in Block L14-50, an exclusive petroleum concession covering the entire northern section of the hydrocarbon-rich Phetchabun basin, which has been subject to a 200-line kilometer 2D seismic program and an extensive magnetic survey. The southern section of the basin currently being developed by China's ECO Orient Energy Limited (60%) (a subsidiary of the Hong Kong and China Gas Company Limited), Kazakhstan's Berlanga Group (20%) and Loyz Energy Limited (20%) of Singapore, produces approximately 1,888,888 barrels of oil per year.
Neither 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.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected activities of Oil Optimization. The forward-looking statements and information are based on certain key expectations and assumptions made by Oil Optimization. Although Oil Optimization believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Oil Optimization can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Oil Optimization undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
This news release is intended for distribution in Canada only and is not intended for distribution to the United States newswire services or dissemination in the United States. It does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer or sale of any of the Common Shares in any jurisdiction in which such offer or sale would be unlawful. The Common Shares have not been and will not be registered under the U.S. Securities Act, or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. Person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.