WesCan Energy Announces Loan Transaction and Operations Update
Calgary, Alberta--(Newsfile Corp. - April 27, 2022) - WesCan Energy Corp. (TSXV: WCE) ("WesCan" or the "Company") is pleased to announce that, further to its previous press release, it has now entered into an agreement for a loan transaction providing for an additional infusion of capital in the amount of $500,000 to further assist with its upcoming drilling program at Provost, Alberta (the "Loan"). The Loan is from a company controlled by a major shareholder of the Company, who is an insider by virtue of owning greater than 10% of the issued and outstanding shares of the Company. The commercial terms of the Loan has been set at an interest rate based on the current prime rate plus 5.80% per annum (0.75% per month) until the Loan is fully repaid. The Loan will be repaid from the expected revenue from the spud date of the new well at Provost, with fifty percent (50%) of the revenue being used for the purposes of repaying the Loan. The Loan is unsecured and matures one year from the date that the loan agreement was entered into. Finalization of the Loan is subject to approval of the TSX Venture Exchange.
The Company is pleased to further announce that it has made significant progress with the preliminary groundwork including surveying and construction of the drilling location, land acquisition(s) and the securing of a purchase order for both the surface and intermediate casing for the well. Ongoing discussions with all other field related services in preparation of the new well have commenced and are being negotiated and finalized.
Furthermore, as previously stated in the Company's press release on March 31, 2022, WesCan stated that is was proceeding with a series of well repairs at Provost, Alberta. It was expected that the Company would repair up to 5 wells along with the available resources including rig availability, however, as a result of the overall costs being lower than originally budgeted for, 3 additional wells were repaired (8 gross wells) within the time period and successfully completed shortly after county road bans were lifted. As a result, the workovers have added approximately 67 barrels of oil per day increasing gross production to approximately 85-90 bbls/day. There are 2 additional wells that require flowline repairs that have been deferred for an extended period of time due to previously low commodity prices. The Company now expects to proceed with these repairs during the summer months providing more favorable ground conditions to conduct such operations. Further updates will be announced in due course.
Once again, WesCan will also be reviewing production optimization schemes and overall field operational efficiencies at the Company's wholly owned facilities as a result of the recent increase in overall production and in the event of the successful drilling and completion of the new well.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Greg T. Busby, President & CEO
WESCAN ENERGY CORP.
Tel: (403) 265-9464
John H. Cassels, CFO
WESCAN ENERGY CORP.
Tel: (403) 265-9464
TSX Venture: WCE
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Disclaimer for Forward-Looking Information
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding the finalization of the Loan, the use of proceeds therefore, the receipt and timing of regulatory approval and other comments about expected operational results. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that the Loan may not close on the expected timeline or for the expected amounts, that regulatory approval may not be received for the Loan or that operational issues will be encountered with the spudding of the new well or bringing the production online. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as otherwise required by law.
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