Point Loma Resources Limited: Announces Sale of Royalty
Calgary - Point Loma Resources Ltd. (TSX VENTURE: PLX) (the "Corporation" or “Point Loma”) announces that it signed a definitive agreement with Source Rock Royalties Ltd. to create a 2.5% gross overriding royalty on existing Point Loma lands and production in exchange for cash proceeds of $1,000,000.The funds will be applied to the third quarter facilities programs underway at Point Loma that will pipeline connect previously suspended and behind pipe production. The activity should potentially increase the estimated production beyond 700 boepd by the beginning of the fourth quarter 2016 and beyond 800 boepd by year end.
Point Loma has received $200,000 as initial payment and will receive two further payments of $450,000 and $350,000, respectively, upon completion of the tie-in projects and meeting production targets.
“This partnership solidifies our initial capital projects and represents another solid step in generating strong cash flows in the near term,” said Terry Meek, President and CEO of Point Loma. “We will continue to seek additional opportunities for cash flow additions to our target area of west central Alberta as we grow our Corporation in this attractive time in the energy cycle.”
About Point Loma
Point Loma is a public oil and gas exploration and development company focusing on conventional oil and gas reservoirs in Central Alberta. Point Loma will utilize its experience to acquire, drill and develop assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
For further information, please contact:
Terry Meek, President and CEO
Point Loma Resources Ltd.
Telephone: (403) 705-5051 ext.101
tmeek@pointloma.ca
Kevin Angus, Executive Vice-President Business Development
Point Loma Resources Ltd.
Telephone: (403) 705-5051 ext. 103
kangus@pointloma.ca
Randall Boyd, Vice President Finance and CFO
Point Loma Resources Ltd.
Telephone: (403) 705-5051 ext. 105
rboyd@pointloma.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
