Advantagewon Oil and Gas Corp., Engages Gunpowder Capital Corp.

October 25, 2016 9:00 AM EDT | Source: Gunpowder Capital Corp.

Toronto, Ontario--(Newsfile Corp. - October 25, 2016) - Gunpowder Capital Corp. (CSE: GPC) (CSE: GPC.PR.A) (FSE: YS6N), (the "Corporation") announced today that it has been retained by Advantagewon Oil & Gas Corp., ("Advantagewon") to assist in Advantagewon's proposed going public transaction.

In order to provide Advantagewon with a sufficient public float, GPC will subscribe for up to Two Hundred and Fifty Thousand Dollars ("$250,000.00") CDN of common shares in the capital of Advantagewon by issuing up to Two Million Five Hundred Thousand ("2,500,000") Gunpowder Capital Corp., common shares to Advantagewon.

As compensation for Gunpowder's services, which will include managing administrative and compliance matters, Advantagewon will pay Gunpowder Capital Corp., Thirty Thousand Dollars ("$30,000.00") CDN. It is anticipated - barring any regulatory delays - that it will take approx., 30 - 45 days in order for Advantagewon's non-offering prospectus to be approved by the OSC. The OSC's approval will then give Advantagewon the ability to apply to the Canadian Securities Exchange ('the CSE") in having its common shares listed onto the CSE.

Upon successful listing of Advantagewon's common shares onto the CSE, Advantagewon will issue Two Hundred and Fifty Thousand Dollars ("$250,000.00") worth of Advantagewon common shares to Gunpowder Capital Corp.

About Advantagewon Oil & Gas Corp

Advantagewon was incorporated under the Business Corporations Act (Ontario) on July 10, 2013, and is a widely-held privately owned, Toronto-based oil and gas company with a focus on development opportunities in Texas, U.S.A. Advantagewon currently owns two properties in Texas: (i) the Saratoga property located in Hardin County, Texas (the "Saratoga Property"); and (ii) the La Vernia property located in Guadalupe County, Texas (the "La Vernia Property").

Saratoga Property
The Saratoga Property contains 260 acres and is located near the Spindletop oil discovery of 1901. A National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") reserves report, dated November 1, 2013 (the "Saratoga Reserve Report"), indicates gross proved plus probable reserves of 1.61 million barrels of oil and net proved plus probable reserves of 1.20 million barrels of oil on the Saratoga Property.

A well drilled by Advantagewon on the Saratoga Property in May 2014, resulted in an initial production of 100 barrels of oil per day ("bbls/d") from the Cook Mountain Formation Yegua Group. The total current production of that well as of November 17, 2014 is approximately 105 bbls/d. The Saratoga Reserve Report indicates that additional oil reserves are present in other locations updip to wells that watered-out in previous years. Due to the strong water drive flow and pressures of the Cook Mountain formation updip oil from prior oil well producers in this formation was not recovered, leaving several potential drilling locations.

La Vernia Property
The La Vernia Property is a low-risk, low-cost infill drilling development project. Advantagewon is currently acquiring additional land in the area, with a goal of acquiring 6,000 acres. This project is currently not producing.

A NI 51-101 reserves report, dated November 1, 2013 (the "La Vernia Reserve Report"), indicates gross proved plus probable reserves of approximately six million barrels of oil equivalent ("MMBoe") and net proved plus probable reserves of 4.7 MMBoe on all available leases, with potential production coming from shallow (i.e. less than 1100 feet) Cretaceous and Tertiary strata. In addition, potential reservoirs are present at a depth of approximately 1,000 to 3,500 feet. This area is in the heart of the South Texas oil fields (25 miles southeast of San Antonio). Roads and pipeline infrastructure and service companies are excellent, allowing for easy development of the field.

For further information please contact:

Mr. Frank Kordy
Interim CEO & Director
Gunpowder Capital Corp.
T: (647) 466-4037
E: frank.kordy@gunpowdercapitalcorp.com
Mr. Paul Haber
CFO
Gunpowder Capital Corp.
T: (416) 363-3833
E: paul.haber@gunpowdercapitalcorp.com

 

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE accepts responsibility for the adequacy or accuracy of this release.

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