Nanton, December 1, 2017 - Cerrus Energy announces:
Objective
The objective of Cerus Energy Group (TSXV:CEA) is to build a premier energy portfolio of development interest through its proprietary CWI (Carried Working Interest) capitalization structure.
Strategy/Investment process
Cerus uses a formal Development Finance Program (or DFP) structure to enhance the management and placement of investment capital. Our Finance Program is suitable for long and short-term capital projects with the capability of retained expansion through the provision of rolling development options. The DFP both uses and optimizes a series of revenue sharing mechanisms to recover investment capital and associated fees from inner corporate investments.
Update Cut Off - Nov 30th, 2017 Market Close
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Period of Performance
The Company's inaugural DFP with Vital Energy has completed the drill and casing of 101/14-15-18-17W3 which was spudded on November 13th, 2017. The Company has received an update from the operator that the well is currently being fracked by a reputable service provider. Post completion Cerus and Vital will perform a program and geological review to assess the mechanical efficiencies and performance vs. theoretical modeling.
Cerus funded the program through the Lomac Syndicate Program to a non-arm's length financier. The financier will retain 160% of the total 180% Penalty Payout on the Pennant, Saskatchewan Play. The tailing 20% and 5% GORR with be retained by Cerus as an earned margin and retained royalty.
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