Bighorn Petroleum Ltd., Flying A Petroleum Ltd., Tenaka Drilling Consortium Ltd. ("Tenaka") and Wyn Developments Inc., (collectively the "Partners"), continue efforts to complete the amalgamation into Canada Gas Corp. (the 'Company") as soon as possible. Recent efforts have concentrated on financing the Company to meet near term commitments, which include both drilling and acquisition.
Focus Energy Trust has now drilled the first well of the 2007/2008 winter season, the a-38-A/94-G-15 Triassic Halfway development well at Bougie Trutch. The well is now undergoing testing and completion and upon success, will be tied into production prior to the end of the 2007/2008 winter drill season (Q1 2008).
Wyn Developments Inc. and Flying A Petroleum Ltd. announce that they have each entered into bridge loan agreements with a third party investor for the total loan sum of $200,000, subject to regulatory approval where required. Pursuant to the Wyn bridge loan agreement, the lender agreed to lend a total of $92,000 to Wyn. Wyn has agreed to issue the lender 92,000 of its common shares as a bonus at a deemed price of $0.10 per share, issuable upon receipt of regulatory acceptance of the Wyn bridge loan agreement.
Pursuant to the Flying A bridge loan agreement, the lender agreed to lend a total of $108,000 to Flying A. Flying A agreed to issue 108,000 of its common shares to the lender as a bonus at a deemed price of $0.10 per share, issuable upon receipt of regulatory acceptance of the Flying A bridge loan agreement. The Wyn and Flying A loans are repayable upon the earlier of the completion of an equity financing by Canada Gas Corp. (the merged entity) and April 30, 2008. The bridge loans bear interest at 12% per annum.
Discussions are ongoing among the Partners with a number of interested investor groups respecting the form and terms of an equity financing for Canada Gas Corp, however, the Partners will now finalize the share exchange ratios and seek conditional Toronto Venture Exchange acceptance of the transaction. The shareholder information circulars outlining the entire transaction with prospectus level disclosure will be distributed as soon as possible thereafter, ahead of shareholder meetings to be scheduled at least 25 days from mailing. After the meetings, the Partners will require court and final Exchange approval prior to the Company being called to trade.
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