JOURNEY ENERGY INC. ANNOUNCES CLOSING OF THE PRIVATE COMPANY ACQUISITION
CALGARY, AB, April 4, 2022 /CNW/ - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the "Company") reports that it has closed the previously announced private company ("PrivateCo") acquisition.
The acquisition price was paid via the issuance of 1.75 million Journey shares plus $8.0 million of cash. Production from PrivateCo's producing wells the period March 13-26 was approximately 660 boe/d (54% light crude oil and NGL's). The new Ellerslie horizontal well drilled by PrivateCo in the first quarter (31% working interest) has now been connected to PrivateCo's production facility and commenced production on April 1. This well is forecast to add approximately 75-100 boe/d net to Journey.
Journey Energy Inc.
700, 517 – 10th Avenue SW
Calgary, AB T2R 0A8
www.journeyenergy.ca
Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel of oil equivalent per day ("boe/d"), natural gas volumes have been converted to barrels of oil equivalent at six (6) thousand cubic feet ("Mcf") to one (1) barrel. Use of the term BOE may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel ("Bbl") of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
No securities regulatory authority has either approved or disapproved of the contents of this press release.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking-statements in this release include, but are not limited to, the opinions and beliefs of management. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "forecast" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Journey is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Journey Energy Inc.
For further information contact: Alex G. Verge, President and Chief Executive Officer, 403-303- 3232, [email protected] or Gerry Gilewicz, Chief Financial Officer, 403-303-3238, [email protected]
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