SOURCE: Pennine Petroleum Corporation

Pennine Petroleum Corporation

March 22, 2016 07:36 ET

Pennine Announces C$1.5 Million Non-Brokered Financing to Advance Albanian Energy Project

CALGARY, AB--(Marketwired - March 22, 2016) -


Pennine Petroleum Corporation (TSX VENTURE: PNN) ("Pennine" or the "Corporation") is pleased to announce that the Corporation will be undertaking a non-brokered financing of up to 50,000,000 units for proceeds of C$1,500,000. Each unit is offered at C$0.03, and shall consist of one common share ("common share"), and one common share purchase warrant ("warrant") with an exercise price of C$0.05 for a period of one year.

Proceeds from this financing will be used for the following items:

  • $1,100,000 to enact and meet the terms of a production sharing agreement for the Velca Block in Albania;
  • $200,000 for offering costs; and
  • $200,000 for working capital.

"We are very pleased and excited to continue the advancing of items related to the Velca Block in Albania," says Pennine president and CEO John Garden. "The Velca Block provides the foundation to build an emerging energy firm in Albania, and will open up additional opportunities in developing the natural resource sector in this nation."

Adds Mr. Garden: "Our team's significant experience and expertise in Albania will contribute to the continued success of Pennine. We thank our shareholders and partners for their support and look forward to developments in the coming months."

As part of this non-brokered financing, warrants are subject to an acceleration clause. This clause states that if, four months and one day after the warrants are issued, the closing price of the common shares of the Corporation, on the principal market on which such shares trade, is equal to, or exceeds, C$0.20 for 20 consecutive trading days (with the 20th such trading date hereafter referred to as the "Eligible Acceleration Date"), the warrant expiry date shall accelerate to a date 20 calendar days after issuance of a press release by the Corporation announcing the reduced warrant term -- provided, no more than five business days following the Eligible Acceleration Date, that:

  • the press release is issued; and
  • notices are sent to all warrant holders.

This financing is subject to final TSX Venture Exchange approval. Common shares and warrants are subject to a four-month hold period.

The Velca Block is located 10 kilometres southeast of the port city of Vlore, in southern Albania, and covers an area of 153,215 acres (239 square miles, or 620 square km). The hydrocarbon reservoirs associated with the Velca Block are Ionian subthrust carbonates, similar in structure to reservoirs of the foothills of western Alberta.

On Dec 2, 2015, Pennine received notification from licensee Albpetrol Sh. A. ("Albpetrol"), the national oil company of Albania, that Pennine had been confirmed by the Republic of Albania's Ministry of Energy and Industry as the successful bidder for the Velca Block.

On Jan. 11, 2016, the Corporation announced the appointment of Richard Wadsworth, P. Eng, to its board of directors. Mr. Wadsworth is the former president and director of Bankers Petroleum Ltd., when Bankers initiated activities in Albania.

On Feb. 17, 2016, the Corporation announced it had signed the main terms and conditions of a production sharing agreement for the Velca Block with Albpetrol.

Additional details related to Pennine's projects in Albania and Canada can be viewed on the Corporation's website at:

About Pennine Petroleum Corporation: Pennine Petroleum Corporation is an emerging oil and gas exploration and development company ( currently active in Albania and the Canadian province of Alberta.

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.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the proposed terms and timing of the Offering and the expected use of proceeds. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Corporation. Although the Corporation believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Corporation can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, the risk that the transactions described herein are delayed or are not completed. The forward-looking statements contained in this document are made as of the date hereof and The Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The securities of Pennine have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

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