NEXERA FINALIZES ACQUISITION OF AOC ASSETS
Nexera Energy Inc. (TSX Venture: NGY) (formerly Emerald Bay Energy Inc. (TSX Venture: EBY)) (the “Corporation”, the “Company” or “Nexera”) today announced that the TSX Venture Exchange has provided final approval of the purchase agreement dated Feb. 3, 2020, between the Company and Advantagewon Oil Corp (“AOC”). Under the agreement, Nexera acquired assets comprising 30 oil and gas leases in South Texas. The total amount of consideration paid to the AOC for the assets is as follows:
(i) total cash payments of $50,000 (U.S.) and;
(ii) 2,601,800 common shares of Nexera (the “NGY Shares”) at the post consolidation deemed price of 15 cents per common share, representing in aggregate USD$300,000.
The NGY Shares issued to AOC will be held in escrow by Nexera until December 31, 2020. On or before December 31, 2020, Nexera (or its designee) may acquire the 2,601,800 NGY Shares for an aggregate USD$300,000. Should Nexera elect not to acquire the NGY Shares, then the NGY Shares will be returned to Nexera’s treasury and the balance of the purchase price for the assets will be paid via an overriding royalty interest on the Acquired Leases being granted to AOC as follows:
• 5-per-cent overriding royalty interest on all acquired leases with a net revenue interest of 75 per cent or greater;
• 2-per-cent overriding royalty on all acquired with a net revenue interest of 72 per cent up to, but not including, the acquired leases with a net revenue interest of 75 per cent;
• No overriding royalty shall be assigned to leases with a net revenue interest of less than 72 per cent.
• The overriding royalty interest shall be in place until such time as AOC has received an aggregate USD$400,000.00 at which point the royalty interest shall be terminated.
Shelby Beattie, President and CEO of the Company commented: “Although we are all in uncertain times, we are confident that the addition of these assets will assist the Company in maintaining and even growing operations in the weeks and months ahead. We are able to affordably maintain operations as we have our own service rigs and equipment through our subsidiary Production Resources Inc., and we have favorable contracts in place whereby we receive the WTI price plus bonuses for all of our oil production. We add our prayers to yours as we all move forward with the resolve to overcome the Covid-19 crisis.”
ABOUT NEXERA ENERGY INC.
Nexera Energy Inc. (TSX Venture: NGY) is an energy company with oil producing properties in Southwest Texas. Nexera is owner and operator of the Lavernia, Wooden Horse and Nash Creek Projects. Additionally, the Company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
For further information, please contact:Nexera Energy Inc. President, Shelby D. Beattie, by telephone at (403) 262-6000 Email: info@ebyinc.comwww.nexeraenergy.com.
Neither 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.
