Terra Nova to Receive C$3,000,000 Capital Injection
Singapore / TheNewswire / February 10, 2015 - Terra Nova Energy Ltd. ("Terra Nova") (TSX-V: TGC OTCQX: TNVMF) is pleased to announce that it has signed a term sheet with Perseville Investing Inc. ("Perseville") whereby Perseville has agreed to acquire a 5.1666% working interest in each of Petroleum Exploration License ("PEL") 112 and 444 for a total of C$3,000,000 (the "Purchase Price"). Terra Nova plans to use the proceeds for completing up to two wells on the upcoming drill program on PEL 444.
Henry Aldorf, Chairman and CEO, stated, "We are pleased to be raising the necessary initial capital for our upcoming drilling campaign on PEL 444 and possible funding for future wells without further diluting our share structure." Mr. Aldorf added that despite the recent pullback in oil prices, "Low cost, high margin oil production, like producing fields in the Cooper/Eromanga Basins, will continue to be explored even in the current oil price environment."
As additional consideration for the Purchase Price, Terra Nova will grant Perseville (which currently owns a 25.6% working interest in each of PEL 112 and 444) the right to fund any future wells drilled by Terra Nova on PEL 112 and 444 in proportion to the working interest contribution amount of Perseville set forth in the Farm-In Agreement. In the event that Perseville provides such funding, Perseville will not be required to dilute its existing working interest as required under the Farm-In Agreement with Terra Nova.
The parties have agreed to enter into a definitive agreement and are expected to close the transaction on or before February 28, 2015.
About Perseville Investing Inc.
Perseville Investing Inc. is a private boutique investment management firm domiciled in the British Virgin Islands with a longstanding history of expertise in oil and gas investments across multiple jurisdictions globally.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is an oil and gas company with a right to acquire up to a 55% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."
For more information please contact:
Lydia Danis
Corporate Communications
T: +1 604 200 1039
Email: lydia@terranovaenergyltd.com
Nico Civelli
VP Finance
T: +65 9395 8990
Email: nico@terranovaenergyltd.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information relating to Terra Nova's intentions to conduct the seismic program and subsequent drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. Findings by other oil and gas issuers does not necessarily indicate that Terra Nova will be successful in making such findings in the Western Flank. In making such forward-looking statements, Terra Nova has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Terra Nova in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Terra Nova may elect to, Terra Nova is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law.
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