CORPORATE UPDATE 5/26/2020
Fortem Resources Inc. Provides Corporate Update
VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Fortem Resources Inc. (TSXV: FTM; OTCQB: FTMR) (the “Company” or “Fortem”) would like to provide its shareholders with a general corporate update.
Company management has been working diligently and extensively with the Alberta Securities Commission (“ASC”) to process the revocation of the Cease Trade Order (“CTO”) issued by the ASC. The Company continues to respond to comments from the ASC and feels confident that it will be able to obtain a resolution to the CTO in the near future. In the meantime, the Company continues to maintain its day to day operations and is current with all its required filings. The Company is also pleased to announce that is has commenced working on the audit of its annual financial statements for the year ended February 29, 2020 and looks forward to filing these as soon as they are prepared.
Chief Operating Officer, Michael Caetano comments: “It’s been almost a year since the issuance of the CTO against the Company, which has prevented us from moving forward on various plans. Despite the unexpected turbulence brought by the CTO and current markets conditions, management of the Company continues to look towards building the Company according to plan while at the same time seeking new energy opportunities. We thank all our shareholders for their patience and understanding.”
UTAH ASSETS
On May 22, 2020, but effective as of March 1, 2017, the Company’s wholly-owned subsidiary Black Dragon Energy, LLC (“Black Dragon”) entered into a Fifth Amendment to Purchase and Sale Agreement (the “BD Amendment”), which amended the terms of the Purchase and Sale Agreement dated effective March 1, 2017 (the “BD PSA”), between WEM Dragon, LLC (“WEM”) and Black Dragon with respect to the Moenkopi Formation and has the effect of:
* postponing the payment of the remaining US$5.3M owed under the RR PSA relating to certain of its Utah property interests (Mancos Formation) until receipt of one or more financings by the Company (or certain of its subsidiaries), in which case the Company must pay 12.5% of the proceeds of each financing close until payment in full;
*extending the payment of an additional US$300,000 as the Workover Funds on or before August 1, 2020 (which Workover Funds are separate from and in addition to the cash consideration of US$5.3M);
*extending the outside date of full payment of the remaining US$5.3M to August 1, 2020;
* extending the “Obligation Deadline” for drilling obligations to August 1, 2020; and
* extending the deadline for bond replacement to August 1, 2020.
In connection with the BD Amendment, the Company entered into a Ratification of Purchase and Sale Agreement with WEM on May 22, 2020 but effective March 1, 2017, whereby the Company ratified, adopted and approved the BD Amendment.
PURCHASE AND SALE AGREEMENT - ROLLING OCK RESOURCES, LCC
On May 22, 2020, but effective as of March 1, 2017, our wholly-owned subsidiary Rolling Rock Resources, LLC (“Rolling Rock”) entered into a Sixth Amendment to Purchase and Sale Agreement (the “RR Amendment”), which amended the terms of the Purchase and Sale Agreement dated effective March 1, 2017 (the “RR PSA” and, together with the BD PSA, the “Purchase Agreements”), between Rockies Standard Oil Company, LLC (“RSOC”) and Rolling Rock with respect to the Mancos Formation and has the effect of:
*postponing the payment of the remaining US$5.3M owed under the RR PSA relating to certain of its Utah property interests (Mancos Formation) until receipt of one or more financings by the Company (or certain of its subsidiaries), in which case the Company must pay 12.5% of the proceeds of each financing close until payment in full;
*extending the payment of an additional US$300,000 as the Workover Funds on or before August 1, 2020 (which Workover Funds are separate from and in addition to the cash consideration of US$5.3M);
*extending the outside date of full payment of the remaining US$5.3M to August 1, 2020;
*extending the “Obligation Deadline” for drilling obligations to August 1, 2020; and
*extending the deadline for bond replacement to August 1, 2020.
In connection with the RR Amendment, the Company entered into a Ratification of Purchase and Sale Agreement with RSOC on May 22, 2020 but effective March 1, 2017, whereby the Company ratified, adopted and approved the RR Amendment.
COVID-19
During these unprecedented times, management of the Company has taken actions to minimize the risks imposed by the novel strain of coronavirus, COVID-19, for both employees and people interacting with the Company’s programs and activities. Although there are no known or suspected cases of the virus reported at any of the Company’s workplaces in Canada or USA, Fortem is following government health protocols and is closely monitoring its activities. Fortem has implemented a formal work from home protocol until it is safe to return to its workplaces.
About Fortem Resources Inc.
Fortem is a Nevada oil and gas corporation, which holds properties in Alberta and Utah. The Company is engaged in the exploration, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and Utah in the United States. The Company is seeking North American and International expansion through an acquisition strategy.
For further information about Fortem, please visit the company website at www.fortemresources.com or email info@fortemresources.com.
On behalf of the Board of Directors,
FORTEM RESOURCES INC.
“Michael Caetano”
Michael Caetano
Chief Operating Officer
Tel: (403) 241-8912
https://www.otcmarkets.com/stock/FTMR/news/Fortem-Resources-Inc-Provides-Corporate-Update?id=263021
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