Hanwei Energy Announces Purchase and Sale Agreement for the Acquisition of 4,000 Acres of Oil and Gas Leases in Alberta
05 Marzo 2014 - 7:00AM
Marketwired
Hanwei Energy Announces Purchase and Sale Agreement for the
Acquisition of 4,000 Acres of Oil and Gas Leases in Alberta
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 5, 2014) -
Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"),
today announced that the Company has reached an agreement (the
"Purchase and Sale Agreement" or "PSA") for the acquisition of
certain oil and gas interests from an Alberta-based oil and gas
exploration and production company ("Vendor"), occupying some 4,000
acres located approximately 40 km south west of Edmonton, Alberta
(the "Lands"), for a purchase price of $1.8 million (plus G.S.T.
and customary closing adjustments)(the "Acquisition"). A deposit of
$180,000 was paid in accordance with the PSA.
The Acquisition aims to strategically diversify the Company's
capital investments, operations and revenue while maintaining its
focus within the oil and gas industry. The Vendor commissioned a
report (dated March 31, 2013) prepared by an Independent Qualified
Reserve Evaluator indicating total oil and gas proved and probable
reserve in the Lands of 494 mboe. Upon closing of the Acquisition,
the Company plans to commence the preparation of a development
program during 2014. Hanwei, through its appointed contractors,
will operate the majority of the assets being acquired and will own
a 100% working interest in these Lands. It is expected that oil and
gas production facilities to be developed within the Lands will
utilize Hanwei's fiberglass reinforced plastic pipe products,
associated technologies, and expertise.
Upon the Company having obtained certain approvals from the
Alberta Energy Regulator (the "AER") and Vendor having obtained TSX
Venture Exchange approval, the Acquisition will be closed into
escrow (the "Escrow Closing Date"). Subsequent to the Escrow
Closing Date and upon approval from the AER for certain well
licenses to be transferred from Vendor to the Company (the "Well
License Transfer Approval"), the closing consideration shall be
released from escrow and the Acquisition shall be deemed closed
(the "Closing Date"). Notwithstanding the aforementioned, should
the Well License Transfer Approval not be granted by the AER within
five months of the date of the PSA then all or a portion of the
closing consideration shall be returned to the Company and the PSA
shall be deemed terminated. Funding of the Acquisition will be
completed by way of a shareholder's loan provided by Hanwei's
Chairman and Chief Executive Officer (the "Shareholder's Loan").
The Shareholders Loan is unsecured and for no fixed term, at zero
interest rate, and is repayable at call.
The PSA requires a Put/Call Option Agreement to be executed
between Vendor and the Company on the Escrow Closing Date (the
"Option Agreement"), which Option Agreement will require Vendor to
sell and/or the Company to acquire, Vendor's then pooled and
working interests, wells and pipelines on and related to a section
of lands immediately adjacent to the Lands (the "Option Assets").
The Option Agreement is subject to certain items to be undertaken
by Vendor to the satisfaction of the Company within six months of
the Closing Date, the purchase consideration for the Option Assets
being $500,000 plus G.S.T.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a leading manufacturer of high
and low pressure, fiberglass reinforced plastic pipe products and
associated technologies and services for the international oil and
gas, and infrastructure industries. Hanwei serves major energy
customers in the Chinese and global energy markets.
Neither the TSX nor its Regulation Services Provider (as
that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this
release.
FORWARD-LOOKING INFORMATION
The forward-looking information in this press release presents
the Company's expectations as of the date of this press release and
accordingly is subject to change after such date. Readers should
not place undue importance on forward-looking information and
should not rely upon this information as of any other date. While
the Company may elect to, the Company does not undertake to update
this information at any particular time, except as required by
applicable securities legislation.
Hanwei Energy Services Corp.Graham Kwan, Executive Vice
President,Strategic Development and Corporate Affairs604-685-2239
x108gkwan@hanweienergy.comHanwei Energy Services Corp.Yucai (Rick)
HuangChief Financial Officer604-685-2239
x106yhuang@hanweienergy.comwww.hanweienergy.com
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