PROPOSED PRIVATE PLACEMENT
EXTENSION OF DEBENTURE
CALGARY, Alberta, June 29, 2020 (GLOBE NEWSWIRE) — Marksmen Energy Inc. (“Marksmen” or the “Company”) is pleased to announce the following:
Initial Production Results of the Meredith #1 well at Portage County, Ohio – Marksmen has a Joint Operating Agreement with PEP Drilling LLC (“PEP”) of Ohio, to recomplete up to 40 Clinton Sandstone formation wells in Portage County, Ohio. Under the terms of the agreement Marksmen would pay 100% of the capital costs to earn an 80% working interest until 125% of capital payback is reached (estimated to be approximately six months). Marksmen has agreed that PEP has the right to participate in paying a share of the capital costs up to 25% and working interests would be adjusted accordingly.
The Meredith #1 well is now completed and on production. The well was successfully hydraulically fractured with approximately 5,000 barrels (“bbls”) of water plus sand introduced into the formation at 1,450 psi. The current phase of production is the ‘clean-up’ stage where frac water is being recovered or ‘de-watered’, while still producing oil and gas. As the de-watering volumes have decreased, oil and gas production has been increasing.
Currently, production is approximately 50 bbls of fluid (oil and water) per day. The oil production is 20 bbls per day and natural gas is 60 thousand cubic feet per day (“mcf/day”) (6 mcf is an energy equivalent of 1 bbl of oil) with a combined total of 30 barrels of oil equivalent per day. The oil is a high-quality Pennsylvania grade light oil, with an API of 42 and is sold based on West Texas Intermediate pricing. The natural gas meets pipeline specifications and is being sold at prices based on NYMEX prices. As the de-watering process continues, the Company anticipates, based on analogous wells, that the oil and gas production will increase. A pressure gradient test has not been carried out and the current production numbers are not necessarily indicative of long-term performance.
Archie Nesbitt, President and Chief Executive Officer of Marksmen states “I am very pleased with the initial production from this first of many recomplete well opportunities. We look forward to beginning the next well sometime in the next 30 days. This 40 well recomplete program has the potential to add significantly to the Company’s oil and gas production and allow Marksmen to move to another level. I would like to thank all of our valued shareholder base for their unwavering and continued support.”
Proposed Private Placement – Marksmen announces that it plans to complete a non-brokered private placement of up to 9,000,000 units (the “Units”) of Marksmen at a price of $0.05 per Unit for aggregate gross proceeds of up to a maximum of $450,000 (the “Offering”). There is no minimum Offering. The Units will be comprised of one (1) common share (“Common Share”) and one (1) share purchase warrant (“Warrant”) of Marksmen. Each whole Warrant entitles the holder thereof to purchase one…