NEXERA ANNOUNCES ACQUISITION OF REMAINING 25% STAKE IN PRODUCTION RESOURCES INC.
Nexera Energy Inc. (TSX Venture: NGY, OTC: EMBYF) (the “Corporation”, the “Company” or “Nexera”) today reported that the Corporation has entered into an agreement (dated March 10, 2021) with Hillcrest Investments Ltd. (“Hillcrest”) to acquire a 25% interest in Production Resources Inc. (“PRI”), a private south Texas company that Nexera currently owns a 75% interest in. Nexera is the current operator of PRI and its assets. After closing this transaction, Nexera will own 100% of PRI.
PRI is the operator of all of Nexera’s properties in South Texas, and is also the operator of several properties owned by Hugo Gutierrez Jr. PRI owns wells in the Somerset and Taylor-Ina fields that currently produce 40-50 barrels of oil per day, and PRI also owns extensive oilfield services equipment, including two service rigs.
Pursuant to the transaction, Nexera will buy Hillcrest’s 25% interest in PRI for USD$400,000, in accordance with the following: (i) USD$100,000 paid in 24 equal installments (monthly); plus (ii) the remaining USD$300,000 (being CDN$378,930) to be settled by way of the issuance of 3,789,300 Nexera common shares (“Common Shares”) at $0.10/Common Share. In addition, PRI’s debt amounts owing to Hillcrest (totaling USD$400,000) are cancelled/terminated as part of this transaction.
Hillcrest currently owns 1,500,000 Common Shares (2.6% of Nexera). After closing this transaction, Hillcrest will own 5,325,300 Common Shares (9.08% of Nexera). Hillcrest is controlled by Clarence Wagenaar who owns or controls an additional 2,500,000 Common Shares. Mr. Wagenaar, as a result of controlling an aggregate 7,825,300 Common Shares, will become an insider of Nexera (controlling approximately 13.3% of Nexera).
All of the Common Shares issued pursuant to the transaction are subject to a 4-month hold period. Completion of the transaction is subject to the final approval of the TSX Venture Exchange.
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 100% (assuming the final approval and completion of this transaction) 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: email@example.com www.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.