TSX-V: ONV
VANCOUVER, Nov. 20, 2018 /CNW/ - Oronova Energy
Inc. ("Oronova" or the "Company") (TSX.V:
ONV) is pleased to report that pursuant to its agreement with
Advantage Energy Services Ltd. ("Advantage") (as announced
on September 17, 2018) (the
"Advantage Agreement"), Advantage has confirmed that its
affiliated company, 2136983 Alberta Ltd. ("2136983") has
entered into a joint venture and operating revenue sharing
agreement dated November 17, 2018
with a third party company (the "JV Agreement") whereby
2136983 will acquire, subject to financing and director's approval,
an undivided 50% working interest in certain producing and
non-producing oil and gas assets and certain oil and gas plant and
facility assets in the Province of Alberta. Pursuant to the
JV Agreement, in order to acquire its undivided 50% working
interest, 2136983 must invest $4
million as an initial joint venture contribution.
Pursuant to the Advantage Agreement, the parties intend that
upon closing of the transaction Oronova will acquire all of the
issued and outstanding shares of 2136983 from Advantage in exchange
for 10 million common shares of the Company and that members of the
Advantage professional oil and gas team will become the officers,
directors and management of Oronova. It is intended that the
acquisition by 2136983 of its initial 50% joint venture interest,
and the closing of the acquisition of all of the outstanding shares
of 2136983 by the Company will occur concurrently, subject to
completion of financing, approval of the TSX Venture Exchange,
negotiation of definitive documentation and receipt of any required
director or shareholder approvals.
In connection with the proposed acquisition, the Company
announces its intention to raise up to $6MM by way of a
non-brokered private placement of up to 30,000,000 units.
Each unit will be priced at $0.20 and
will consist of one common share and one-half share purchase
warrant. Each full warrant will entitle the warrant holder to
purchase one common share of the Company for two (2) years at an
exercise price of $0.30 subject to
accelerated expiry in the event the Company's common shares trade
at or above $0.45 for a period of 10
consecutive trading days after expiry of the four month hold
period. The Company may pay a finder's fee to qualified
persons in regard to the proposed financing.
Proceeds from the financing will be used to fund acquisitions and
for general working capital purposes.
On behalf of the Board of Oronova Energy Inc.
"David Farrell"
Chief Executive Officer
Cautionary Statement
Neither the TSX Venture
Exchange nor its Regulation Services Provider (as such term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. No
stock exchange, securities commission or other regulatory authority
has approved nor disapproved the information contained
herein.
Forward Looking Statements
This news release
contains forward looking statements relating to the future
operations of the Corporation and other statements that are not
historical facts. Forward Looking Statements are often identified
by terms such as "will", "may", "should", "anticipate", "expects"
and similar expressions. All statements other than statements of
historical fact, included in this release, including, without
limitation, statements regarding future plans and objectives of the
Corporation, are forward looking statements that involve risk and
uncertainties, There can be no assurances that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Corporation's expectations are exploration
risks detailed from time to time in the filings made by the
Corporation within the securities regulations.
The reader is cautioned that assumptions used in the
preparation of any forward looking statements/information may prove
to be incorrect. Events or circumstances may cause actual results
to differ materially from those predicted, as a result of numerous
known or and unknown risks, uncertainties and other factors many of
which are beyond the control of the Corporation. As a result we
cannot guarantee that any forward looking statement will
materialize and the reader is cautioned not to place any undue
reliance on any forward looking statements/information. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward looking
statements contained in this News release are made as of the date
of the release and the Corporation does not undertaken any
obligation to update publicly or to revise any of the included
forward looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by
Canadian securities law.
SOURCE Oronova Energy Inc.