Norwood to Recommence Drilling on Indoklanicsa Concession in Nicaragua
Norwood Resources intends to recommence field exploration activities this fall on the Indoklanicsa concession in Nicaragua. The board of directors is currently reviewing drilling recommendations which have resulted from a series of technical and engineering workshops conducted during the past six months by the Company's technical and operations team with participation from several independent accredited Canadian US petrophysical and engineering consulting firms. A final decision will be taken very shortly on the recommended drilling program, the goal of which is to achieve commercial production at the San Bartolo location by the end of the year. Specific details of the drilling program will be reported within the coming weeks when the Company has received the necessary approvals from the Nicaraguan authorities.
The Company's operations team will be headed by Mr. Roberto Rodrigano, a leading drilling and production engineer and specialist in under-balanced drilling, who has brought many important wells into production around the world during his 39 year career.
In order to finance the next drilling program, make necessary rig upgrades and purchase specialized equipment for under-balanced drilling, the Company is arranging a financing for US$5 Million minimum by way of 'Secured Convertible Promissory Notes'. The term of the Notes will be for 2 years and will be secured by way of a general security interest on all of the assets of the Company. A coupon of 10% per annum will be paid semi-annually. The Company will have the right to repay the Notes and accrued interest during the term by providing thirty (30) days advance notice to the Note holders. If the Company elects for an early repayment, a 5% penalty/bonus will be paid. The Note holders can elect to convert under the terms of the Notes during the same period.
The Notes will be convertible into units at a deemed price of Cdn$0.07. Each unit will consist of one common share of the Company and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one additional common share of the Company at a price of Cdn$0.10, exercisable for two years from closing. The share purchase warrants may be exercised without converting the Notes. The Company will have the right to accelerate conversion of the share purchase warrants if the common shares of the Company trade above Cdn$0.50 for ten consecutive trading days.
The Notes will be issued and governed under the terms of a trust indenture to be entered into between the Company and Computershare Canada Limited and will be offered in Canada and in the US under the "accredited investor" provisions of the relevant jurisdiction and to subscribers from other jurisdictions subject to applicable laws. Issuance of the Notes is subject to regulatory approval.
- Norwood Tests Positive Oil Flows at San Bartolo ST in Nicaragua (Feb 19)
- Norwood Pumps 38.5 API Light Crude Oil from SB-1X2 in Nicaragua (Dec 16)
- Norwood to Recommence Drilling on Indoklanicsa Concession in Nicaragua (Jul 15)