Razor Energy Corp. Announces Completion of Strategic Acquisition of Light Oil Consolidation at Swan Hills and Adoption by FutEra Power Corp. a stock option plan
CALGARY, Alberta, August 12, 2021 (GLOBE NEWSWIRE) – Razor Energy Corp. (“Razor” or the “Company”) (TSXV: RZE) is pleased to announce that it has completed the acquisition of certain of the assets of interest in its central area of Swan Hills, Alberta (the “Assets ) For a total purchase price of $ 5 million in cash, subject to certain closing adjustments (the “Acquisition”) as previously announced in its August 4, 2021 press release.
The acquisition was financed by Arena Investors, LP (“Arena”) through an amended term loan agreement. Arena is an institutional asset manager with $ 2.2 billion in committed assets under management that specializes in providing innovative capital solutions for mid-market companies.
The acquisition enables Razor to profitably add industry-leading, long-term light oil reserves with a base ten percent annual decline, at low risk (41o API), production and cash flow supported by improving commodity price environment as crude oil supply and demand returns to equilibrium.
Meanwhile, FutEra Power Corp. (“FutEra”), a subsidiary of Razor, continues to build our first geothermal project in Swan Hills. FutEra is currently examining other projects, including solar, wind and geothermal power at the wellhead. In addition, FutEra recently commissioned its wholly owned 10 petahash bitcoin mining operation, which includes the supply of self-generated electricity and the mining facility. Additionally, Razor has now completed construction of its Virginia Hills soil treatment facility, which will be operational in the third quarter of 2021.
Razor and FutEra continue to identify and seize opportunities to unleash alternative energy sources while measurably improving the environmental and social impacts of our business.
Further information regarding this acquisition, Razor’s conventional oil and gas operations and FutEra’s ongoing geothermal and innovative projects can be found in our updated corporate presentation available at www.razor-energy.com.
FutEra adopts a stock option plan
The Company also announces today that the Board of Directors has approved the adoption of a fixed stock option plan (the “FutEra Option Plan”) for FutEra.
Under the FutEra option plan, FutEra may grant options to acquire up to a total of 284,000 common shares of FutEra (each a “FutEra share”), subject to the terms of the FutEra option plan and applicable securities laws. It is expected that options will be granted by the FutEra Board of Directors (the “FutEra Board”) to certain FutEra officers and employees for retention purposes and in recognition of their continued efforts to help FutEra become a leader. in Alberta. clean electricity production by upgrading existing assets with new and innovative solutions. Once granted, options will be subject to vesting conditions as determined by FutEra’s board of directors, including an expected term of five years from the date of issue.
The FutEra Option Plan remains subject to the approval of the TSX Venture Exchange.
Razor is a publicly traded junior oil and gas development and production company headquartered in Calgary, Alta. Focused on acquiring, then improving and producing oil and gas from properties primarily in Alberta. The company is led by experienced management and a strong and committed Board of Directors, with a long-term vision of growth focused on efficiency and cost control in all areas of the business. Razor currently trades on the TSX Venture Exchange under the symbol “RZE.V”.
FutEra leverages the innovation and experience of Alberta’s resource industry to create transitional energy and sustainable infrastructure solutions for commercial markets and communities, in Canada and globally . Currently, FutEra is developing a co-produced geothermal and natural gas hybrid power project in Swan Hills, Alberta.
For additional ImFelmaplease vsoNTact:
President and CEO
Razor Energy Corp.
800, 500-5e Ave SW
Calgary, Alberta T2P 3L5
Telephone: (403) 262-0242
FORWARD-LOOKING STATEMENTS: This press release may contain certain statements which may be considered as forward-looking statements. These statements relate to possible future events, including, but not limited to, the Company’s investment program and other activities such as the development of geothermal projects and other innovative projects on the plan. environmental and social. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “estimate”, “potential”, “will”, “Should”, “continue”, “may”, “objective” and similar expressions. Forward-looking statements are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions regarding the availability of capital, applicable legislation, obtaining required regulatory approvals, ” timely execution by third parties of the obligation, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the Company’s growth strategy, general economic conditions, availability of required equipment and services, prevailing commodity prices, price volatility, price differences and the actual prices received for the Company’s products. While the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, forward-looking statements should not be relied upon because the Company cannot guarantee that they will prove to be correct. Because forward-looking statements deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry and geothermal power projects in general (e.g. variability in geothermal resources; such as uncertainty in reserve estimates; uncertainty of estimates and projections relating to production, costs and expenditure, and risks to health, safety and the environment), fluctuations in electricity and raw material prices and exchange rates, changes in legislation affecting the oil, gas and geothermal industries and uncertainties resulting from delays or potential changes in plans for exploration or development projects or capital expenditures. In addition, the Company cautions that COVID-19 could continue to have a material adverse effect on global economic activity and global demand for certain commodities, including crude oil, natural gas and NGLs. , and could continue to cause volatility and disruption of global supply. chains, operations, people mobility and financial markets, which could continue to affect commodity prices, interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. The duration of the current volatility in commodity prices is uncertain. Please refer to the risk factors identified in the Company’s Annual Information Form and MD&A which are available on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and the Company does not undertake to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
ADVISORY INFORMATION ON PRODUCTION: Unless otherwise stated herein, all production information presented herein is presented on a gross basis, which is the direct interest of the Company before deduction of royalties and without including royalty interest.
BARRELS OF OIL EQUIVALENT: The term “boe” or barrels of oil equivalent can be misleading, especially if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas per barrel of oil equivalent (6 Mcf: 1 barrel) is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent an equivalence of value at the wellhead. In addition, since the value ratio based on the current price of crude oil, relative to natural gas, is significantly different from the energy equivalence of 6: 1; using a 6: 1 conversion ratio can be misleading as a value indication.
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