PTRVF - Avila Energy Corporation previously known as Petro Viking Energy Inc. is pleased to provide a Corporate Update to the Acquisition and Name Change
(TheNewswire)
Calgary, Alberta – TheNewswire - June 27, 2022 – Avila Energy Corporation (“ Avila ” or the “ Company ”) uponreceiving Shareholder Approval at the AGM October 15, 2021, theCompany formally filed the change of its name to Avila EnergyCorporation effective December 3, 2021.
On November 24, 2021, the Company received conditionalapproval from the CSE for the Lifting of the Temporary Halt (the“ Halt ”) and the resumption trading of the Company’s sharesprior to the closing of the proposed acquisition of 53,835 Acres,43,935 Acres (Net) of mineral rights, associated wells, pipelines andfacilities from 611890 Alberta Inc. Furthermore, prior to obtainingfinal approval from the CSE, the Alberta Securities Commission (the“ ASC ”) has conducted a continuous disclosure review of theCSE Listing Statement – Form 2A and the information circular for thespecial meeting of shareholders of the Company under section 60.2 ofthe SecuritiesAct (Alberta). The ASC has closed its review onJune 22, 2022, as it had no further comments to make. Avila does notmake any representations, written or oral, that the ASC has in any wayexpressed an opinion or passed judgment on the merits of thedisclosure provided by Avila.
Independent Qualified Reserves Evaluators and Auditorsof Calgary, Alberta, Canada being Deloitte LLP prepared an independentevaluation of reserves and future net revenues derived therefrom, ofthe Petroleum and Natural Gas assets of the interests of Avilaaccording to the Canadian Oil and Gas Evaluation Handbook(“ COGE Handbook ”). As required, these reserves and future net revenueswere estimated using forecast prices and costs (before and afterincome taxes) according to the requirements of National Instrument51-101 (“ NI51-101 ”). The effective date of thisevaluation is December 31, 2021.
Avila upon comparing its work to the COGE Handbook andprior to engaging the Company’s QRE, reduced the number of locationsto 18 from 147 which reduced its Capital Budget. The evaluationcompleted has incorporated a budget of $14.3 million (net) for thedevelopment of the assets in 2022 being acquired. Based on thisdecision the Company is pleased to report that the evaluation of theacquisition on a 10% discounted Net Present Value (NPV10%) basis wasdetermined to be $26.7 million.
The Total Proven Plus Probable (2P) results of theevaluation are summarized as follows:
Cautionary Statement: These are estimates of Future Net Revenue and are not ameasurement of Current Fair Market Value.
As estimated effective January 1, 2022, the value ofthe life of the estimated reserves for the Company are based onprojected average Oil Price of CDN $65.29 per barrel, and an averageprice of $3.81/mcf for natural gas. The Company anticipates thatupon reaching its initial goals and gaining greater visibility onfuture commodity prices that it will be reviewing its capital plans inthe second half of 2022. Upon closing of the transaction the estimatedoil and natural gas production is estimated to be 700 boe/d, 20% oiland Iiquids, 80% natural gas.
Leonard Van Betuw, President, and CEO of Avilacommented, “We continue to concentrate on engaging with regulatorsand working towards satisfying all requirements as we work to theresumption of trading and the closing the proposed Acquisition. Avilaand its contractors remain focused on the future and its long termgoals.
About, Avila EnergyCorporation
The Company is an Emerging CSElisted corporation (‘VIK’), and in combination with expandingportfolio of 100% Owned and Operated oil and natural gas production,pipelines and facilities is a licensed producer, explorer, anddeveloper of Energy in Canada. The Company through the implementationof a closed system of carbon capture and sequestration continues towork towards becoming a low cost Carbon Neutral Energy Producer. The Company continues to grow and achieve its results by focusing on theapplication of a combination of proven geological, geophysical,engineering, and production techniques.
For further information, please contact: LarsGlimhagen, CFO Peter Nesveda, Vice President of Corporate Affairs andInvestor relations, or Leonard B. Van Betuw, of Avila EnergyCorporation.
Email: lars.g@avilaenergy.com peter@intuitiveaustralia.com.au leonard.v@avilaexpl.com
Leonard B. Van Betuw
President & CEO
All statements contained in this press release aboutanticipated future events constitute forward-looking statements.Forward looking statements are often, but not always, identified bythe use of words such as “anticipate” and “expect”.Forward-looking statements are subject to business risks anduncertainties and other factors that could cause actual results todiffer materially from those contained in the forward-lookingstatements. Forward-looking statements are based on estimates andopinions of management at the date the statements are made. TheCompany does not undertake any obligation to update forward-lookingstatements even if circumstances or management’s estimates oropinions should change except as required by applicable laws.Investors should not place undue reliance on forward-lookingstatements.
BOE presentation:
Barrel ("bbl") of oilequivalent ("boe") amounts may be misleading particularly ifused in isolation. All boe conversions in this report are calculatedusing a conversion of six thousand cubic feet of natural gas to oneequivalent barrel of oil (6 mcf=1 bbl) and is based on an energyconversion method primarily applicable at the burner tip and does notrepresent a value equivalency at the well head.
Neither the Canadian SecuritiesExchange nor its Regulation Services Provider (as that term is definedin policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
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