VANCOUVER, British Columbia, Dec. 12, 2019 (GLOBE NEWSWIRE) — FORTEM RESOURCES INC. (TSXV: FTM; OTCQB: FTMR) (the “Company” or “Fortem”) would like to provide its shareholders with a general corporate update regarding its Utah assets and its previously disclosed cease trade order (“CTO”) issued by the Alberta Securities Commission (“ASC”).
Further to the Company’s news release dated September 23, 2019, the Company is pleased to report that it has now come to terms with its partners in Utah to acquire the remaining 25% working interest from Rockies Standard Oil Company LLC and WEM Dragon LLC, along with eliminating their cash and well drilling obligation under each agreement. The aforementioned terms are to be incorporated into two definitive agreements (together, the “Definitive Agreements”) with each of Rolling Rock Resources, LLC (“Rolling Rock”) and Black Dragon Energy LLC (“Black Dragon”), wholly-owned subsidiaries of the Company, which the Company expects will inject capital directly into each of their assets and allow them to benefit from 100% of their net cashflow. The Company also looks forward to recompleting some of the existing wells located on both of the Rolling Rock and Black Dragon properties to enhance their production levels. The Company anticipates the Definitive Agreements to be entered into within the next 30-60 days. Upon the closing the Definitive Agreements, Rolling Rock and Black Dragon will own a 100% working interest of all their assets, providing an attractive opportunity for the Company to raise capital and work strategically with potential joint venture partners.
Audit and ASC Review
As of October 30, 2019, the Company filed its interim financial statements, the related management discussion and analysis and the certification of the annual filings for the three and six months period ended August 31, 2019 (collectively, the “Filings”), and is now current with all of its filing obligations. With the Filings now completed, the ASC has commenced their review of the Company’s application for revocation of the CTO (the “Revocation Application”) and has issued comments with which the Company has responded. Unfortunately, this process will take some time and is necessary in order to remove the CTO. The Company would like to take this opportunity to thank its shareholders for their patience. It is the Company’s every intention to complete the ASC’s review process in a timely manner.
About Fortem Resources Inc.
Fortem is a Nevada oil and gas corporation, which holds properties in Alberta and Utah. The Company is engaged in the exploration, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and Utah in the United States. The Company is seeking North American and International expansion through an acquisition strategy.
For further information about Fortem, please visit the company website at www.fortemresources.com or email email@example.com.
On behalf of the Board of Directors,
FORTEM RESOURCES INC.
Chief Operating Officer
Tel: (403) 241-8912
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.
Forward Looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding: (i) the signing and closing of the Definitive Agreements and matters related thereto; (ii) the anticipated effect of the Definitive Agreements of the Company and its operations; and (iii) the ASC’s review of the Filings and the Revocation Application. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: (i) the Company’s inability to sign the Definitive Agreements; (ii) that the transactions contemplated by the Definitive Agreements may not be approved, or close as expected or at all; (iii) further comment by the ASC with respect to the Filings and the Revocation Application; (iv) the Company’s inability to have the CTO revoked; and (v) general market conditions. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Forward looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publically any forward looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on the SEDAR, available at www.sedar.com.