TIDMCDL
RNS Number : 0900W
Cloudbreak Discovery PLC
16 August 2022
16 August 2022
Cloudbreak Discovery Plc
("Cloudbreak" or the "Company")
Cloudbreak Provides Acquisition and Development Capital Via
Debenture, convertible into a 6% Overriding Royalty Interest
Cloudbreak Discovery PLC (LSE: CDL), a leading natural resources
project generator with a focus on commodities required for the
energy transition, is pleased to announce that it has entered into
an agreement with Iron Forge Holdings (III) Ltd. ("IF3") whereby
Cloudbreak will provide IF3 with USD $1.5 million in development
capital for the Butte Strawn Energy Project ("Butte Strawn" or the
"Project") located in Irion County, Texas. The capital is being
deployed as a convertible debenture which, at Cloudbreak's
discretion, can be converted into a six per cent Overriding Royalty
Interest ("ORI") on the Project in addition to other
considerations.
IF3 has defined a detailed program consisting of workovers of
existing wells, new drilling and enhanced oil recovery techniques
to rapidly grow both oil and natural gas production on the Project.
IF3 is well financed and planning to grow through the drill program
as well as through acquisition of additional brownfield energy
projects that have potential to provide near-term returns through
similar production growth programs.
Key Terms of the Transaction
-- Cloudbreak will provide IF3 with a USD $1.5 million debenture
on a two-year term and in two tranches
o USD $500,000 on signing
o USD $1 million within 90 days of signing
-- The debenture is convertible into a six per cent ORI on the
Project at Cloudbreak's discretion, in addition to other
considerations
-- IF3 will pay 12.5 per cent per annum interest to Cloudbreak,
calculated and paid quarterly in cash or shares in IF3 at the
discretion of Cloudbreak on the USD $1.5 million debenture
-- IF3 will grant Cloudbreak;
o 6,000,000 Warrants with a CAD $0.35 strike price and a
three-year term from financial close. The Warrants are subject to
an acceleration clause;
o First position lien on the Project;
o An area of interest providing Cloudbreak with a six per cent
ORI on any project acquired within a two-mile radius of the Butte
Strawn lease boundary; and
o An area of influence giving Cloudbreak the right of first
refusal to finance additional acquisitions within five miles of the
Project boundary and apply its existing six per cent ORI to that
project in addition to terms settled on as part of an
acquisition.
-- IF3 will endeavor to enter into a definitive agreement
related to a public transaction by 30 September 2022, with
completion by 31 January 2023
The Company has access to the resources to meet the obligations
of this agreement.
Kyler Hardy, President and CEO of Cloudbreak , commented, "This
second royalty acquisition in Texas further demonstrates the
opportunity in the pipeline of royalties that we have built and are
now executing on. We are successfully deploying our project
generator methodology from the mineral and metals sector into the
energy sector and growing cashflow through equity and royalty
payments. Cloudbreak has chosen to focus on brownfield energy
projects that can be acquired at favourable valuations and have the
potential for rapid returns. Firstly, through workovers and
recompletions followed by new drilling locations.
"A key component of Cloudbreak's energy royalty strategy is
identifying operators and management teams with track records of
delivering tangible and measurable results. This provides us with
confidence in their ability to execute on the agreed plan around
projects that we participate in though a royalty structure. We are
excited to be working with the team at IF3 and look forward to
additional regional acquisitions.
"Through this and similar transactions in the future, we see an
opportunity to create significant shareholder value by growing
Cloudbreak's cash-flow though structured deals and portfolio
royalty acquisitions in the natural resources sector."
About the Butte Strawn Energy Project
The Butte Strawn Field is an 897.2 acre field held by production
located on the Eastern Flank of the Permian Basin. The primary
producing formation is the Strawn Reef with an average depth of
7,500 feet. Iron Forge Holdings (III) Ltd. has a 100 per cent
working interest and a 60 per cent net revenue interest. Projected
production is 560 barrels of oil per day from seven wells from
proven recoverable reserves. All in operating cost per barrel is
projected at $10.19, including production taxes, acquisition and
drilling cost. The field has proven recoverable reserves of
1,134,000 barrels* with a PV10 value of USD$40.5 million. Reserve
Commodity Price is constant at $85 per barrel. In addition, the
Probable behind pipe reserves from the Wolfcamp Lime, Canyon A
& B sands and the Strawn Sandstone are 1,080,000 barrels.
(*Yeager, R. 1997 Reserves and Performance Engineering Study
S&T/Atikinson Leasehold Buttes (Strawn) Field Irion County,
Texas).
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Qualified Person
Mr. Rory Kutluoglu P. Geo., Chief Operation Officer of the
Company, is the Qualified Person ("QP") under NI 43-101 for the
technical information in this news release, has verified the data
disclosed and approves the technical contents contained in this
news release.
-ENDS-
For additional information please contact:
Cloudbreak Discovery Tel: +1 604 428 9480
PLC
Kyler Hardy, CEO khardy@cloudbreakdiscovery.com
Novum Securities Tel: +44 7399 9400
(Financial Adviser)
David Coffman / Lucy
Bowden
Shard Capital Partners Tel: +44 207 186 9900
(Broker)
Damon Heath / Isabella
Pierre
BlytheRay Tel: +44 207 138 3204 Cloudbreak@blytheray.com
(Financial PR/IR-London)
Tim Blythe
Megan Ray
Stellium Services Tel: +44(0)207 129 Cloudbreak@StelliumServices.com
(Investor Relations) 1205
www.StelliumServices.com Andrew Wilson
Claire Bowden
About Cloudbreak Discovery PLC
Cloudbreak Discovery PLC, is a leading natural resource project
generator, working across a wide array of mineral assets that are
being developed and managed by an experienced team with a proven
track record. Value accretion within the projects being developed
by Cloudbreak's generative model enables a multi-asset approach to
investing and exploration. Diversification within the mining sector
and amongst resource classes is key to withstanding the cycles of
natural resource investing.
About Iron Forge Holdings (III) Ltd.
Iron Forge Holdings (III) Ltd. is a private Canadian energy
company focused on the acquisition, development and production of a
portfolio of oil and gas assets, located onshore, USA. Iron Forge
has built a team of seasoned hydrocarbon professionals with more
than 100 years of combined experience in acquiring and producing
from capped and exploration stage assets, primarily across prolific
production basins in Texas.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRPAMRTMTBBBLT
(END) Dow Jones Newswires
August 16, 2022 02:00 ET (06:00 GMT)
Cloudbreak Discovery (LSE:CDL)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Cloudbreak Discovery (LSE:CDL)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
