[ACCESSWIRE]
Singapore / ACCESSWIRE / February 23, 2015 / Terra Nova Energy Ltd. ("Terra Nova") (TSX-V: TGC OTCQX: TNVMF) is pleased to announce that Terra Nova Energy (Australia) Pty Ltd., being a wholly owned subsidiary of Terra Nova, has sold a 5.1666% working interest in each of Petroleum Exploration License ("PEL") 112 and 444 for a total of $3,000,000 (the "Purchase Price") in accordance with the terms of a Purchase and Sale Agreement between Perseville Investing Inc. ("Perseville") and Terra Nova (Australia) Pty Ltd. (the "Purchase Agreement"). Terra Nova plans to use the proceeds towards the drilling of up to two wells in the upcoming operational program on PEL 444.
Prior to closing of the transaction, Perseville owned a 25.6664% working interest in each of PEL 112 and 444 (the "Pre-Transaction Working Interest"). Accordingly, Perseville has increased its working interest in PEL 112 and 444 to 30.8330% and Terra Nova now owns a 20.6667% working interest in each of PEL 112 and 444.
Under the terms of the existing Farm-In Agreement with Holloman Energy Corporation ("Holloman") and Perseville, Holloman and Perseville are required to transfer Terra Nova an aggregate 5.8333% working interest in both PEL 112 and 444 (the "Earning Contributions") for each of the next five wells drilled as set forth below:
--------------------------------------------------------------------------------------------------------------- | |(...a)Post-Transaction|(...a)Well 1 |(...a)Well 2 |(...a)Well 3 |(...a)Well 4 |(...a)Well 5 | | |Working Interest | | | | | | |-------------------------------------------------------------------------------------------------------------| |(...a)Holloman |(...a)48.5003% |(...a)4.8333%|(...a)3.8889%|(...a)3.8889%|(...a)3.8889%|(...a)3.8889%| |-------------------------------------------------------------------------------------------------------------| |(...a)Perseville|(...a)30.8330%% |(...a)1.0000%|(...a)1.9444%|(...a)1.9444%|(...a)1.9444%|(...a)1.9444%| ---------------------------------------------------------------------------------------------------------------
Under the terms of the Purchase Agreement, Perseville will not be required to transfer its Earning Contribution to Terra Nova in the event that it pays its proportionate share of the drill costs in connection with drilling a well. Perseville's proportionate share of drill costs will be determined on a per well basis based on the following formula: Total Drill Costs of Well x (Perseville's Earning Contribution divided by 5.8333%). In order to exercise the foregoing right, Perseville must elect to participate and pay its proportionate share of the drilling costs 30 days prior to commencement of the drill program.
The Board of Directors has unanimously approved the transaction. Perseville is an entity controlled by Carlo Civelli. Nico Civelli, Vice President of Finance and a director of Terra Nova, is the son of Carlo Civelli. As such, Mr. Nico Civelli abstained from voting on the foregoing transaction.
About Perseville Investing Inc.
Perseville Investing Inc. is a private boutique investment management firm domiciled in the British Virgin Islands with a longstanding history of expertise in oil and gas investments across multiple jurisdictions globally.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is an oil and gas company with a right to acquire up to a 55% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."
For more information please contact:
Terra Nova Energy Ltd.
Lydia Danis
Corporate Communications
T: +1 604 200 1039
Email: lydia@terranovaenergyltd.com
Nico Civelli
VP Finance
T: +65 9395 8990
Email: nico@terranovaenergyltd.com
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 release.
This news release contains forward-looking information relating to Terra Nova's intentions to conduct the seismic program and subsequent drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. Findings by other oil and gas issuers does not necessarily indicate that Terra Nova will be successful in making such findings in the Western Flank. In making such forward-looking statements, Terra Nova has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Terra Nova in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Terra Nova may elect to, Terra Nova is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law.
SOURCE: Terra Nova Energy Ltd.