(TheNewswire)
Nanton, AB / TheNewswire / December 18, 2017
Objective
The objective of Cerus Energy Group
(TSXV:CEA) is to build a premier energy portfolio of development
interest through its proprietary CWI (Carried Working Interest)
capitalization structure.
Strategy/Investment process
Cerus uses a formal Development Finance
Program (or DFP) structure to enhance the management and placement of
investment capital. Our Finance Program is suitable for long and
short-term capital projects with the capability of retained expansion
through the provision of rolling development options. The DFP both
uses and optimizes a series of revenue sharing mechanisms to recover
investment capital and associated fees from inner corporate
investments.
Update Cut Off – December 15, 2017 Market Close
Period of
Performance
The Company’s inaugural DFP with Vital Energy has completed the
drill and casing of 101/14-15-18-17W3 which was spudded on November
13th, 2017. The development had experienced operational setbacks forcing
the deviation of the completions and frac fluid recovery process. The
fracing operation was successfully completed and with the lost section
of the BHA successfully being fished out of hole and the well was
placed directly on production. The frac fluids will continue to be
recovered with continued monitoring for well fluid stabilization. Once
a stabilized fluid rate is achieved the operator and cerus will
provide a joint news release announcing production results. Cerus and
Vital will perform a program and geological review to assess the
mechanical efficiencies and performance vs. theoretical modeling.
Cerus funded the program through the Lomac Syndicate Program to a non-arm’s length financier. The financier will retain 160% of the total 180% Penalty Payout on the Pennant, Saskatchewan Play. The tailing 20% and 5% GORR with be retained by Cerus as an earned margin and retained royalty.
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