ANK:CC - Angkor Resources Acquires Oil Production & Expands Carbon/Gas Capture
(TheNewswire)
GRANDE PRAIRIE, ALBERTA – TheNewswire - December 12, 2023 - ANGKOR RESOURCES CORP.(TSXV:ANK ) and ( OTC:ANKOF) (“ANGKOR”) announces that its 100%-owned energysubsidiary, EnerCam Exploration Ltd. (“EnerCam”), has signedagreements on Dec. 12 th , 2023 with Project Operator Eyehill CreekExploration Ltd. (“Eyehill”) and 358140 Alberta Ltd.(“358140”) to acquire a 40% interest in the Evesham/MacklinProduction Project including the Oil Production from 33 vertical wellsand the Gas Capture facility and all related pipelines and equipment(“the transaction”). The transaction values the total Projectat $11,500,000, making the purchase price of the 40% interest withadjustments at $4,392,000 (all values in CAD).
HIGHLIGHTS
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GLJ Petroleum Consultants (“GLJ”) was contracted toprovide an independent assessment of the Project. Its report indicatesProved Developed Producing (“PDP”) oil reserves at 376,300 Barrelsand gas reserves at 95 million cubic feet from the Project.
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Additional Probable Reserves add 109,000 Barrels of oiland 28 million cubic feet of gas to provide Total Proven and Probable(“TPP”) of 485,000 barrels oil and 123 million cubic feet ofgas.
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The report indicates a Net Present Value (“NPV”) ofPDP with a 10% discount to be $11,171,000 and a NPV of TPP and a 10%discount of $13,930,000 value. (excerpt from report below).
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GLJ tracked a historical 10-year period up to September2023 and forecasted a period to September 2033.
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The Funding for the Acquisition is a loan of $4,840,000from a private lender to EnerCam, and the acquired 40% interest is the securityheld by the Lender. Repayment terms of interest and principal areover a ten-year period, at 10% interest, payablemonthly , and adjusted every three years. TheLender is also entitled to 20% of potential carbon credits on theProject for the life of the Project. The loan includes $540,000 ofdebt repayment which was previously in place from the Lender for costsof the original gas capture project and additional workovers andimprovements to the pipelines, infrastructure, and equipment.
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The Project produces in excess of 225 barrels of oilproduced daily (“BOPD”) and the recent lifting costs (costs ofproduction before taxes) are below $24 per barrel.
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Effective date for production allocationpost-transaction is November 1, 2023.
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No finder’s fee will be paid in regard to thetransaction.
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One of the two vendor companies, 358140, has a 50%shareholder who is a related party to ANGKOR.
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Eyehill shall continue to be the Operator for theProject.
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Post transaction, the percentage interest of the threeParties, each with a working participating vested interest, is:
EnerCam 40%
358140 35%
Eyehill 25%
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The report was completed in accordance with NI 51-101 and Canadian Oil and GasEvaluation Handbook (“COGEH”) standards. (see further definitionon page 3 below).
The Project currently generates oil and/or gasproduction from 33 wells, handles its water with two waterdisposal/injection wells and its own trucking service. It alsocaptures the emissions from the wells through pipelines to aprocessing facility, where gas is dehydrated and then sold into theprovincial energy distribution system. EnerCam was previouslyinvolved only in the gas capture portion of this project. Thistransaction adds oil revenue, water production and disposal, and addedcapacity for gas capture to EnerCam’s holdings.
Angkor is pleased to note that it has obtainedconditional approval from the TSX Venture Exchange (the“ TSXV ”) for the transaction and expects full approval oncompletion of all agreements anddisbursements.
Above: Typical site for oil production without gascapture. Oil and water are collected in the tanks and the gas isreleased through a flare stack or vented to the atmosphere.
Below: A portion of the Project site showing 6 of 32well sites. Wells within the project capture the gas and flow gasesunderground via pipeline to the collection facility. The result isa clean production cycle with oil, water, and gas all utilized forenergy solutions without emitting production gases to theatmosphere.
The production zone of 32 of the 33 wells is in theMannville Sparky formation. One well is producing from the Cummingsformation. The earliest of the wells startedproducing in 2001; the original field of 30 wells was completely shutin 2018 and the Eyehill and 358140 teams acquired the project torefurbish, rebuild, and restart production in 2019. They addedseveral other wells to the Project as they advanced production. TheMannville is known to have multi-zone potential in the area and thecompany will continue to evaluate additional production opportunitiesas they arise.
Delayne Weeks, CEO of ANGKOR, comments on thetransaction, “We are very excited to close this transaction andadvance the company to a phase with recurring monthly cashflow and anopportunity to expand the environmental benefitsby reducing greenhouse gas emissions from flaring and venting. Thecapture of the carbons (methane, ethane, etc.) redirects the energy toprocessing and provincial sales instead of sending it to atmosphere. We would like nothing less than to capture 3 million cubic feet ofemission gas daily and this transaction paves a path to reachsurrounding producers who are flaring or venting and offer them asolution. It really is a win-win, and the cashflow from the oilproceeds will support operations of EnerCam and ANGKOR.”
Above: Portion of GLJ independent analysis describing definitions ofreserve estimates and standards implemented in the report.
Map from GLJ report illustrating the areas with contributing lands(which are shown in yellow) of the interest acquired by EnerCamExploration.
QUALIFIEDPERSON:
Dennis Ouellette, B.Sc., P.Geo., is amember of The Association of Professional Engineers and Geoscientistsof Alberta (APEGA #104257) and a Qualified Person as defined byNational Instrument 43- 101(“NI 43-101”). He is the Company’s VP Exploration and hasreviewed the technical report provided by third party certified oiland gas technical appraisers.
ABOUT ANGKOR RESOURCESCORPORATION:
Angkor Resources Corp. is a publiccompany, listed on the TSX-Venture Exchange, and is a leading resourceoptimizer in Cambodia working towards mineral and energy solutionsacross Canada and Cambodia. Angkor’s carbon capture and gasconservation project in Saskatchewan, Canada is part of its long-termcommitment to Environmental and Social projects and cleaner energysolutions across expanding jurisdictions. The company holds three mineral explorationlicenses in Cambodia and its subsidiary, EnerCam Resources, wasgranted an onshore oil and gas license of 7300 square kilometers inthe southwest quadrant of Cambodia.
CONTACT: DelayneWeeks - CEO
Email: info@angkorresources.com Website: angkorresources.com Telephone: +1 (780)831-8722
Please follow @AngkorResources on , , , Instagram and .
Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
The information in this pressrelease contains certain forward-looking statements, including withinthe meaning of applicable securities laws. These statements relate tofuture events or our future intentions or performance. All statementsother than statements of historical fact may be forward-lookingstatements. Forward-looking statements are often, but not always,identified by the use of words such as “anticipate”,“continue”, “demonstrate”, “expect”, “may”, “can”,“will”, “believe”, “would” and similar expressions andinclude statements relating to, among other things, Angkor’sposition, strategy and development plans and the benefits to bederived therefrom; theCorporation’s anticipated annual production growth and annualcapital spending for the next three years; that the focus of theCorporation’s development activities during the remainder of 2023;expectations of when the transaction is completed; the anticipatedfocus of Angkor’s operations in 2024; the Corporation’santicipated 2024 average production; and the Corporation’sexpectations that it will continue to deliver clean, reliable,sustainable energy, contributing to a reduction in global emissions bydisplacing high-carbon fuels. Angkor’s actual decisions, activities,results, performance or achievement could differ materially from thoseexpressed in, or implied by, such forward-looking statements andaccordingly, no assurances can be given that any of the eventsanticipated by the forward-looking statements will transpire or occuror, if any of them do, what benefits that Angkor will derive fromthem.
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