Business Wire

Cuda Oil and Gas Inc. Announces Agreements to Sell all of its Quebec Assets for a Total Transaction Value of $10.59 Million

Share

Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) is pleased to announce that it has entered into a series of binding Asset Purchase Agreements (the “APAs”) to sell all of its oil and gas assets and related liabilities located in the Province of Quebec (“Quebec”) at a total transaction value of CAD$10.59 million, including cash consideration at closing of CAD $4.29 million, to arm’s-length purchasers (the “Transaction”). The Transaction is anticipated to close on or about August 30, 2019.

Highlights:

  • Cuda will dispose of all of its petroleum and natural gas rights in Quebec (the “Assets”) which includes all land permits, licenses and production rights and interests in the Province as well as all tangible assets including drilling and related equipment associated with the Assets;
  • The purchasers will assume all environmental liabilities, including abandonment and reclamation obligations, associated with the Assets in Quebec, estimated by the parties at CAD $3.2 million;
  • The purchasers will pay CAD $4.29 million to Cuda in cash consideration; and
  • The purchasers will cause Cuda to be released and discharged, at closing, from a pending CAD $3.1 million claim associated with the exercise of dissent rights in connection with the plan of arrangement of the Company completed August 15, 2018.

This Transaction is subject to normal closing conditions and regulatory approvals, including the approval by the TSX Venture Exchange.

KES 7 Capital Inc. (“KES 7”) acted as a financial advisor to the Company. Pursuant to TSXV requirements, KES 7 has confirmed that it is an arm’s-length party to Cuda and the purchasers.

Glenn Dawson, President and Chief Executive Officer of Cuda stated: “This is a significant transaction for Cuda shareholders in its magnitude and strategic creation of a pure play company in the Powder River Basin which has been described as the ‘Permian of the Rockies’.

“Moving forward, Cuda will focus on development of the Company’s high netback conventional light oil assets and Secondary Recovery Miscible Gas Flood in Converse County, Wyoming. Cuda’s contiguous Powder River Basin lands contain multiple defined opportunities to access and develop low risk proven conventional reservoirs.

“Additionally, light oil charged unconventional reservoirs within the Cretaceous Stack are highly prospective. Economic horizontal drilling exploitation opportunities are being matured across the Basin by major operators.”

At year-end 2018, Cuda’s independent reserves evaluator, Ryder Scott, assigned significant light oil reserves to the Company. The reserves evaluation was prepared in accordance with the definitions, standards and procedures contained in the COGE Handbook and NI 51-101 - Standards of Disclosure for Oil and Gas Activities. Summary reserves information for the Company's Proven Developed Producing ("PDP") and Proved Non Producing ("PNP"), Total Proved ("1P"), and Proved plus Probable ("2P") Reserves is provided below. No reserves were assigned to the Assets and all of the reserves were assigned to the Company’s remaining Alberta and Wyoming assets.

Reserves at December 31, 2018:

  • PDP + PNP is 1,534 mboe (62 % oil & liquids)
  • 1P is 4,949 mboe (84 % oil & liquids)
  • 2P is 14,571 mboe (84% oil & liquids)

Reserve Value at December 31, 2018 (before tax discounted at 10%):

  • PDP + PNP is $26.8 Million
  • 1P is $77.8 Million
  • 2P is $191.6 Million

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.

Forward-Looking Information

This news release contains forward-looking information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to the Transaction, the impact of the Transaction on Cuda and its results and development plans; regulatory and third party approvals relating to the Transaction; anticipated Transaction consideration and form thereof; the expected closing date of the Transaction; the anticipated discontinuance, release and discharge of the dissent claim; the Company pro forma the Transaction; the estimated environmental liabilities, including abandonment and reclamation obligaitons; and the anticipated benefits of the Transaction; the existence and performance of resource and reserve opportunities on the Company’s lands and related lands; and activity levels in the Company’s core areas. Risk factors that could prevent forward-looking statements from being realized include market conditions, third party and regulatory approvals, ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future oil and gas prices. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

"BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact information

Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Newmont Publishes 2019 Sustainability Report1.6.2020 15:00:00 CESTPress release

Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or The Company) today announced the publication of its 2019 Sustainability Report, Beyond the Mine, a transparent and comprehensive disclosure of the Company’s environmental, social and governance (ESG) performance. “Our sustainability report provides investors and other stakeholders a transparent and detailed look at look at our safety, environmental and social performance,” said Tom Palmer, President and Chief Executive Officer. “In 2019, we completed two transformative transactions whilst enhancing our ESG performance to align with our position as the world’s leading gold company.” Newmont’s 2019 sustainability highlights include: Achieving no workplace fatalities and conducting a global safety culture review, which identified several opportunities to enhance Newmont’s Fatality Risk Management program and improve the way fatality risks are managed Further strengthening management of tailings, whilst enhancing transparency through a

New Western Union research provides insight into the future of international education1.6.2020 15:00:00 CESTPress release

The Western Union Company (NYSE: WU), a leader in cross-border, cross-currency money movement and payments, today shares a new report on “The Future of International Education,” in partnership with The Future Laboratory. The white paper highlights five new student profiles that will evolve from the shifting attitudes and behaviors of today’s youth. From Hybrid Thinkers to Greener Graduates, this new report predicts how academic institutions should adapt to meet these expectations. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200601005162/en/ Meet the students of the future: new student profiles uncovered in “The Future of International Education” (Graphic: Business Wire) The findings come as universities and colleges worldwide are evolving to navigate COVID-19, from moving online, to delaying term dates. Institutions can use the report to ensure the new policies they introduce align with the needs and priorities of interna

FDA Issues Emergency Use Authorization for Impella RP as Therapy for COVID-19 Patients with Right Heart Failure1.6.2020 13:00:00 CESTPress release

The United States Food and Drug Administration (FDA) has issued an emergency use authorization (EUA) for Impella RP to include patients suffering from COVID-19 related right heart failure or decompensation, including pulmonary embolism (PE). Abiomed (NASDAQ: ABMD) manufactures Impella RP. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200601005257/en/ Impella RP is now FDA indicated for COVID-19 related complications, including pulmonary embolism. (Photo: Business Wire) Impella RP is a temporary heart pump that provides circulatory support for patients who develop right side ventricular failure. Five years of pre- and post-market clinical studies support Impella RP’s safety and efficacy. In 2017, Impella RP received FDA approval as safe and effective for treating right ventricular failure in the setting of acute myocardial infarction and after cardiac surgery. Biventricular cardiac support can be provided when Impella RP is

Vivet’s Second Gene Therapy Product, VTX-803 for PFIC3, Receives US and European Orphan Drug Designation1.6.2020 13:00:00 CESTPress release

Vivet Therapeutics announced today that both the Food and Drug Administration (FDA) and the European Commission (EC) have granted Orphan Drug Designation (ODD) for Vivet’s second gene therapy product, VTX-803, for the treatment of Progressive Familial Intrahepatic Cholestasis type 3 (PFIC3). PFIC3 is a rare life-threatening and chronically debilitating condition due to progressive severe liver dysfunction, accompanied by jaundice, portal hypertension, hepatosplenomegaly and failure to thrive. The symptoms of the disease usually appear first in childhood with progressive cholestasis, evolving to hepatic failure, cirrhosis and need for liver transplantation. “We are very pleased to receive these designations which further validate Vivet’s efforts to treat rare inherited metabolic disorders. The FDA and EC have both recognized the unmet need for a safe and effective treatment of PFIC3 and the potential of VTX-803 to address such need. The field of Progressive Familial Intrahepatic Cholest

Zynga Enters Into Agreement to Acquire Istanbul-based Peak, Creator of Top Charting Mobile Franchises Toon Blast and Toy Blast1.6.2020 13:00:00 CESTPress release

Zynga Inc. (Nasdaq: ZNGA), a global leader in interactive entertainment, today announced it has entered into a definitive agreement to acquire Peak, one of the most globally successful mobile gaming companies, for $1.8 billion. Peak brings a 100-person strong team and two Forever Franchises, Toon Blast and Toy Blast, that have consistently ranked in the top 10 and top 20 U.S. iPhone grossing games for over two years, respectively. These franchises add significant scale to Zynga’s live services and will be an additional driver of margin expansion over the coming years. Peak also enhances Zynga’s new game pipeline with additional projects in early development. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200601005142/en/ Zynga Enters Into Agreement to Acquire Istanbul-based Peak, Creator of Top Charting Mobile Franchises Toon Blast and Toy Blast (Graphic: Business Wire) Founded in 2010 by Sidar Sahin, Peak has developed the

bitFlyer Europe and Quazard Partner to Bring First Ever Trading Competition to Botwars Ultimate Trading1.6.2020 06:00:00 CESTPress release

Leading cryptocurrency exchange bitFlyer, is partnering with crypto-trading game developer Quazard, to bring the first ever gamified trading competition to the Botwars Ultimate Trading universe. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200531005005/en/ bitFlyer and Quazard bring the first gamified trading competition to the Botwars Ultimate Trading universe (Graphic: Business Wire) The competition, which launches today, allows Botwars players to compete in a free to enter crypto-trading simulator to win real Bitcoin. This is the first trading competition to launch on Botwars, and the only live trading competition of its type. In Botwars Ultimate Trading, players need to build an army of trading robots (each representing a trade) and lead them into battle to conquer the cryptocurrency markets. Botwars is a real-time, gamified currency trading experience where you will learn new trading skills, unlock powerful new tradin