SINGAPORE, SINGAPORE--(Marketwired - Sept. 28, 2016) - Terra Nova Energy Ltd. ("Terra Nova" or the "Company") (TSX VENTURE:TGC)(OTCQX:TNVMF) is pleased to announce that it has entered into an Agreement ("Agreement") with Perseville Investing Inc. ("Perseville") to acquire a 30.833% Working Interest ("Interest") in Petroleum Exploration License ("PEL" or "Licenses") 112 and 444, and a 1.47% gross overriding royalty interest on the PELs. The Licenses are located on the western flank of the Cooper Eromanga Basin in the State of South Australia with Terra Nova being the operator.
In consideration for the purchased Interest, Terra Nova shall issue to Perseville 40,000,000 common shares ("Shares") at a deemed price of $0.05 per share for a deemed value of $2,000,000. Perseville is controlled by Carlo Civelli. Mr. Civelli is the father of Nico Civelli, who is a member of Terra Nova's board of directors. The issuance of the Shares to Perseville is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. After closing of the transaction, Mr. Civelli will own, directly and indirectly, 44,545,455 common shares of Terra Nova, representing 34.93% of the then issued and outstanding common shares of Terra Nova. As a result, Terra Nova will be submitting the transaction for approval of the shareholders at its next Annual General Meeting. The transaction is subject to the approval of the TSX Venture Exchange.
Henry Aldorf, CEO of Terra Nova stated: "This agreement now gives Terra Nova a majority working interest in two licenses proximal to established hydrocarbon systems, with minimal holding costs. This also affords the Company the flexibility to evaluate strategic alternatives to share its financial and technical risks with potential partners on the exploration of these assets, while focusing our near term resources on the redevelopment of the Bobocu field, onshore Romania."
Continuation to British Columbia
Terra Nova is also pleased to announce that its board of directors have approved a change of jurisdiction from the province of Alberta to the province of British Columbia (the "Continuance"). The Continuance is subject to approval, by special resolution, of the shareholders of Terra Nova at Terra Nova's annual general and special meeting to be held on October 28, 2016 and acceptance of the TSX Venture Exchange. The details of the continuation will be set out in Terra Nova's Information Circular, which will be filed under Terra Nova's profile on www.sedar.com.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is an oil and gas company with a 20.66% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."
This news release contains forward-looking information relating to Terra Nova's intentions to conduct the drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. Findings by other oil and gas issuers does not necessarily indicate that Terra Nova will be successful in making such findings in the Western Flank. In making such forward- looking statements, Terra Nova has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Terra Nova in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Terra Nova may elect to, Terra Nova is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law.
Neither the 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.