Vancouver, British Columbia--(Newsfile Corp. – June 5, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ("Molori" or the “Company”), announces that on May 31, 2017, the Company completed upon an agreement to acquire a 25-per-cent working interest in certain leases owned and operated by Ponderosa Energy LLC (see March 3, 2017 news release). This acquisition is in addition to the 25-per-cent working interest in certain leases originally acquired on June 6, 2016.
The additional properties comprise 24 leases and 156 wells, of which 70 are presently producing.
As per the original terms of the agreement, Molori paid to Pondersosa $1-million (U.S.) in cash at closing. Ponderosa has already begun to apply these funds to its continuing program of work-overs to further enhance production in its joint venture with Molori. Subject to TSX Venture Exchange approval, the Company will also issue 2 million common shares to Ponderosa in conjunction with the purchase.
Joel Dumaresq, Chief Executive officer of Molori, stated: "In addition to increasing Molori's share of the Ponderosa Energy production, this latest acquisition further fortifies the Company's balance sheet and enhances cash flow. This acquisition is consistent with our model to continue to build our balance sheet by cost-effectively adding to our production. We believe this foundation is positioning us well, as we move to drill the Red Cave formation."
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The Company owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle, operated by Texas-based independent oil and gas producer Ponderosa Energy, LLC (“Ponderosa”), This giant field was discovered in 1910 and expanded three years later to create one of the US largest gas fields. The experienced management team at Molori is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead. Molori is seizing the opportunity, in the current oil & gas environment, to assemble oil and gas production in nearby and politically safe jurisdictions.
CEO and Director
Molori Energy Inc.
(604) 336 3193
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Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”,