$MOLOF Molori Energy Plans To Drill Red Cave Formation; Announces Private Placement Offering
The core focus of the Molori/Ponderosa partnership remains old field redevelopment that has already resulted in production increase from 40 barrels of oil equivalent ("BOEPD"* since June 2016 to over 400 BOEPD now, an increase in 1P (Total Proven Reserves) from USD $5.15 million to USD $26.9 million as outlined in an updated NI 51-101 reserve report effective January 1, 2017.
Joel Dumaresq, CEO stated, "Our core redevelopment business provides us with a solid cash flow base from which to launch into other growth strategies. The Red Cave is an exciting opportunity to accelerate the growth in our reserves, which we can undertake in the vicinity of our present leases without undermining our current operations."
The company further announces a non-brokered private placement offering (the "Private Placement" of up to 7,000,000 units ("Units" at a price of $0.30 per Unit to raise aggregate gross proceeds of up to $2,100,000. Each Unit will be comprised of one common share and half common share purchase warrant. Each full warrant gives the holder the right to purchase one additional common share of Molori at an exercise price of $0.50 for two years following the closing of the Private Placement. Completion of the Private Placement is subject to the approval of the TSX Venture Exchange.