Oryx Petroleum and Zeg Oil Announce Strategic Investment

The Zey Gawra Contracts are subject to negotiation of definitive agreements, the acceptance of the Toronto Stock Exchange and approval of shareholders, if required.  The Zey Gawra Contracts are expected to constitute related party transactions under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.  Subject to obtaining all required approvals, the Zey Gawra Contracts are expected to be executed in the second quarter of 2016.

AOG Proposed Debt Re-Capitalisation

  • AOG has executed a subscription agreement whereby the Corporation will issue 143,367,988 common shares of Oryx Petroleum to AOG in return for the extinguishment of $57 million of the principal and accrued interest owed under the $100 million credit facility provided by AOG to Oryx Petroleum in March 2015 (the "AOG Equity Subscription"). The AOG Equity Subscription assumes an Oryx Petroleum share price of C$0.55 per common share and a Canadian Dollar-United States Dollar exchange rate of 0.7207.
  • The AOG Equity Subscription is subject to approval of the Corporation's shareholders (excluding AOG and Zeg Oil) and acceptance of the Toronto Stock Exchange. The Corporation's board of directors has called a special meeting of shareholders to be held on April 18, 2016 to consider the AOG Equity Subscription. Shareholders of record at the close of business on March 14, 2016 (excluding AOG and Zeg Oil) will be entitled to notice of and to vote at the special meeting.

Pro-Forma Shares Outstanding and Ownership

  • Following completion of the Zeg Oil Investment, the Zey Gawra Contracts and the AOG Equity Subscription, the Corporation will have total common shares outstanding of 399,636,461 with AOG owning 58% and Zeg Oil owning 32%.

2016 Capital Program

Oryx Petroleum is in the process of modifying its previously announced 2016 work program such that expenditure levels will not exceed funds currently available or expected to be available as a result of the aforementioned transactions and from expected cash flow from operations. Oryx Petroleum believes this combination of transaction provides it with funding sufficient to meet the requirements of the Zey Gawra Project and to cover other forecasted expenditures until the end of 2016. As such, previously planned drilling of new wells targeting the Demir Dagh Cretaceous reservoir will be deferred until adequate funding is available.

(Source: Oryx)


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