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The time to buy more is now imo!
3 cents is a good price and won´t hold long.....
I agree with your statement that the share price could be back up to $0.07 within a blink of an eye!
Maybe some more news?
You know it!
I'm just waiting for this quiet period to end.
But it was nice to finally read SOMETHING from Tim!!!
If we get some volume it won't take much to get it back to 7 but I have been waiting for them to GIVE ME A REASON to buy more.
They will need to make a market for this stock eventually...IMO.
disco
Are you still in?
IMHO it is buying time again........
thinking about buying a few 100k more as I´m sure the story will continue in a pretty short while.....
News out and chart
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63639153
New sedar filing out...
Thought we would have heard something by now...
Judging from the volume, I guess nothing spectacular happened. Not bad but not good either...?
Did anyone attend the shareholders meeting?!
Above $0.10 soon IMHO!
I have the feeling they want to turn this company around!
A possible reverse split will lower the amount of shares on sale and MGWSF.OB might skyrocket from now on IMHO!
Ex39
Bucks,
"...I read their yearly comes out at the end of this month."
Do you have a link?!
I´m invested in MGWSF.OB since december!
IMHO! it will go past 10 cents soon!
8.7 million market cap is a joke IMHO!
Ex39
They were more than just neighbors a few years ago. BQI, back when it was CanWest, was also tied in as well.
And then there's Earth Energy Resources and their citrus solvent.
I have a good feeling about this one. Hopefully, the buyers will come back.
next Door Neighbors in Montanan property?
Primary Petroleum Advances its Alberta Basin Bakken Prospect in Western Montana with $14 Million CAP
Saturday, 02 April 2011
Primary Petroleum Corporation (TSX VENTURE:PIE)(OTCQX:PETEF) ("Primary" or the "Company") is pleased to update its shareholders and the investment community on the advancement into an exploration phase on its 242,000 net acre Pondera-Teton prospect located in the southern Alberta Basin Bakken fairway in Western Montana.
The Company intends to commence its $14 million CAPEX exploration program with a proprietary 3D seismic program of up to 100 sq. miles covering four prospect areas over its' 242,000 net acres, followed up with six vertical wells and one horizontal test well to analyse and test the Lodgepole, Bakken and Three Forks Formations for exploitation and development. The commencement of the 3D seismic program will start next week, and the Company expects the seismic crews to be in the field in late May. The current exploration program has been planned to enable Primary to spud its first vertical test well by late summer and complete its CAPEX program by the Company's fiscal year-end.
"We are very excited to be moving forward into the exploration phase on our Alberta Basin Bakken prospect in Western Montana. Our Land Acquisition strategy will continue on a more focussed approach to enhance our current 3D seismic program. The proposed drill program will allow our technical team's ability to further evaluate, understand and de-risk our Alberta Basin Bakken prospect for future exploitation and development with an industry partner," states Mike Marrandino, President and CEO. "The latest Industry Research reports 44 Companies on both sides of the border have acquired acreage in the Alberta Basin Bakken area of interest in southern Alberta and western Montana that outlines a fairway of approximately 175 km (110 mi) north-south, and 55 km (35 mi) east-west. To date, there has been over 48 wells identified and approximately $0.5 billion spent on land acquisition, exploration and drilling that are seeking to exploit this early-stage Bakken discovery area that has the vast potential for multiple of billions of barrels."
Primary Petroleum is continuing ongoing discussions with potential Industry Partners that have expressed an interest in a Joint Venture opportunity with its Western Montana Bakken Fairway prospect.
About Primary Petroleum Corporation - Primary Petroleum is a junior oil and gas company engaged in exploration and development activities in Montana and Alberta and currently holds substantial land positions in two unconventional tight oil plays in North America; the Saturn Prospect in the Williston Basin and the Pondera-Teton Prospect in the Southern Alberta Basin. The Company's mandate is to continue to acquire strategic land positions of merit in the Sedimentary Basin of the Western United States and Canada and seek out qualified industry partners to exploit and develop them. To learn more about us, please visit our website at: www.primarypetroleum.com.
Until then, when I choose to go in, I will play this like a typical penny stock. At least the technicals are promising! That's a great start.
I've got a couple of friends in Canada with some connections, they are prodding carefully to see what they can find out.
The Heath Shale formation - I think in Montana. Trying to do this by memory.
Which fields?
It's my understanding that there is activity in Deerfield, but God only knows how well it is going.
They aren't very good communicators.
I'm hoping they can find a like-minded company to partner up with so they can finally get this thing off the ground.
My gut tells me they just have to prove that it can be done and somebody will come swooping in.
Tim has a Halliburton background so I'm quite sure he's got a few ideas.
Thanks, I read their yearly comes out at the end of this month. With financing like they have been getting, their expansion will probably eat up profit margins, but outlook seems pretty good. I have a couple friends working on DD on the oilfields they are currently not producing on. When I find out more, I will be glad to post
We have a shareholder's meeting coming up on the 29th. Info to follow...
Total shake-up on the BOD (and they all have been granted options as they exit the building).
Really like the new CEO.
There is a 1:10 reverse split on the table, and they just converted the first $50,000 at 2 cents back in Feb. Those shares were sold between 4 and 5 (and I'm guessing a few of them are still tucked away somewhere for good luck, too).
Nobody really knows what is going on but the Canadians will find out next week.
As far as I can tell this is a REAL oil company with tons of potential. A lot of money has been invested to bring them to this point, and we get to come in and scoop it up under 10!
MGWSF popped on my scans a couple weeks ago & I have been watching it and getting my DD in order. Besides what has already been posted, any info you can relay would help potential investors. I wanted to see if it would react to the golden cross the way it should and when it would find support back down. Seems to be solid enough to hold its own
Hmmmmm....Is that a bid at .06 I see?
Took a little longer but better late than never.
Note how anything under 04 on the ask is always gobbled up right quick.
Volume at 4 is a good thing...IMO. Still haven't noticed any dilution yet, though the trading has been kind of odd the past few days. Lots of stuff going through out of sequence.
Set 'em up Tim.
Weekly chart says 10 cents in about 2 or 3 weeks and the daily says the bid will be moving up to 6 cents in the very near future.
Now let's see if I am right...
That was quick! Just bought them back, thank you very much.
Take this back under 5 cents and I will gladly buy them all back!
Yup. Let about 25% go today. Still holding the rest.
1.4 cents all the way to 9. That's how you freakin do it!
Good thing we are still in Kansas Dorothy...
This one is gonna surprise a few people.
So are Dan and Tim brothers? And they both worked for Halliburton, huh?
http://www.icofund.com/team.html
I think I found my somebody...
Tell me what's going on down in MO and I will fork over some more dough.
MegaWest Energy Closes US$1.2 Million of US$4.0 Million Financing
http://finance.yahoo.com/news/MegaWest-Energy-Closes-US-1-2-cnw-2979011945.html
CALGARY, Jan. 6 /CNW/ - MegaWest Energy Corp., (the "Company" or "MegaWest"), (OTC BB:MGWSF.OB) is pleased to announce that it has closed a transaction with a group of qualified institutional buyers and accredited private investors that has resulted in US$1.2 million in new funding. This was the first tranche of a planned US$4.0 million financing, expected to close by the end of January, 2011.
FINANCING
The proposed transaction, which is not underwritten, consists of the issuance of US$4.0 million in senior secured convertible notes (the "Senior Notes"). The proceeds of the Senior Notes financing will be used to fund a portion of the Company's capital expenditures and operating expenses for the Company's fiscal year ending April 30, 2011 and a portion of such expenditures for fiscal year 2012. Features and terms of the Senior Notes follow:
Senior Secured Convertible Notes:
* Funding Amount: $4,000,000
* Term: 18 months.
* Conversion Price: $0.02 per common share
* Redemption: The Notes are redeemable in cash at any time at the Company's option or convertible into common shares at the Company's option if the underlying shares are freely tradable and common shares of the Company trade at or above $0.25 for the previous 20 consecutive trading days and the daily average trading volume has been in excess of US$75,000 per day for the same 20 day period. Redemption will include principal and all outstanding accrued interest. In the event of redemption before the end of the term, there will be a 15% of investment amount premium due. The Company will give 30 days notice of cash redemption at which time the Investors may elect to receive the redemption in common shares at the Conversion Price.
* Coupon: 8% cash or 12% in additional Notes at the Company's option for the first six months after Closing, Investor's option thereafter. Interest quoted annually, payable quarterly.
* Seniority: The Notes are senior secured obligations of the Company secured against Company's share of the oil and gas assets in the Deerfield Area of Missouri and contain standard negative covenants and events of default for transactions of this nature.
* Warrants: One warrant has been issued to the holder for each $0.05 principal amount of the Notes, strike price of $0.025 and a term of 36 months.
* Escrow: Monthly drawdowns from the Escrow Account shall be according to the detailed Use of Proceeds approved by the Company's Board of Directors and attached to the Subscription Agreements.
* Right of Participation: While the Senior Notes remain outstanding, Investors shall have a pro rata right of participation in all future financings.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, these securities, in the United States. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws.
MegaWest is an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil with particular emphasis on the Deerfield area of western Missouri. The Company has two individual 320 acre steam injection projects in the Deerfield area with approximately 20 acres developed on each of the Marmaton and Grassy projects. In the Deerfield area, excluding the 40 acres of developed land, the Company has an operated 90% working interest in over 15,400 acres of undeveloped land prospective for heavy oil development and has identified a number of additional potential steam injection projects on this land base. In total, including the Deerfield Missouri acreage, the Company owns a 70% working interest in 73,241 acres of undeveloped land prospective for heavy oil development and exploration in Missouri, Kansas, Kentucky, and Montana. For further details on the Company and its prospects, please refer to the Company's website and the investor presentation contained therein.
To the bidders on this stock: THANK YOU!! You guys are awesome. I'm kind of excited about this little mystery of an oil company; would be great if they can pull it together.
Filings seem to all be in order and the company looks REAL. That's about all you can ask for in pennyland.
And there's even some bid support too!
AUTO wants shares and NITE is just hanging out in the background.
A little news would send it flying.
Looks like the bottom is in. Chart is set up real nice.
http://stockcharts.com/h-sc/ui?s=MGWSF
Hello??? WTF?
I show a book value of 18 cents. And no debt.
Shooooot.....for $2 million what do I got to lose? Let them dilute--I will just buy more!
People need to recognize.
Did the sale mentioned below go through? Anybody know the proceeds?
I am interested in the Missouri developments, that is a newer area for em. Anybody see potential here.
MegaWest is an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil with particular emphasis on western Missouri. In total, including the Missouri acreage, the Company owns a 67.9% operated working interest in 83,339 net acres of undeveloped land prospective for heavy oil development and exploration in Missouri, Kansas, Kentucky, and Montana. For further details on the Company and its prospects, please refer to the Company's website.
The complete audited consolidated financial statements and MD&A plus additional information relating to MegaWest is available on SEDAR (www.sedar.com), on EDGAR (www.sec.gov) or on the Company's website (www.megawestenergy.com).
MegaWest Announces Restart of Missouri Operations
CALGARY, ALBERTA -- (MARKET WIRE) -- 09/17/09 -- MegaWest Energy Corp. (OTCBB: MGWSF) (the "Company" or "MegaWest"), an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, announced today that it has restarted steam injection at its Marmaton River and Grassy Creek Projects in Missouri.
On September 12, 2009 MegaWest operational personnel restarted steam injection at both of the Marmaton River and Grassy Creek enhanced oil recovery projects in Missouri. This restart has been facilitated by the recent strategic agreement with Iroquois Capital Opportunity Fund ("ICO") as announced on August 31, 2009.
The design oil production capacity of the combined projects is 1,000 barrels of oil per day. Initiation of steam injection is the first step towards achieving this target production rate. Based on past performance and history match numerical simulation using the CMG Stars reservoir simulator, production is expected to ramp up by 50 to 100 barrels of oil per day each month until the target production rate is achieved.
"These projects were brought into operations within 2 weeks of finalizing the ICO agreement. This is a testament to the quality and dedication of our operations team and their capacity to plan and execute," said R. William (Bill) Thornton, President and CEO of MegaWest. "We are pleased to have these plants back in operation and to be back on our path towards building shareholder value."
R. William Thornton, President & CEO
Forward-Looking Statements
This press release contains forward-looking information and statements including opinions, assumptions, estimates and expectations of future employee retention. Forward-looking statements include information that does not relate strictly to historical or current facts. When used in this document, the words "anticipate", "believe", estimate", "expect", "forecast", "intent", "may", "project", "plan", "potential", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to a wide range of known and unknown risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and the financial statements and Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and the financial statements and Form 51-102F1 filed in Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Cusip: #585168 107
Contacts:
MegaWest Energy Corp.
George T. Stapleton, II
Chairman of the Board
281.499.7498
MegaWest Energy Corp.
R. William (Bill) Thornton
President and CEO
403.984.6342
investor.relations@megawestenergy.com
www.megawestenergy.com
Iroquois Capital Opportunity Fund, L.P.
641 Lexington Avenue, 26th Floor
New York, NY 10022
212.974.3070
http://www.streetinsider.com/Press+Releases/MegaWest+Announces+Restart+of+Missouri+Operations/4952408.html
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report Of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of August, 2009
Commission File No. 000-49760
MEGAWEST ENERGY CORP.
(Translation of registrant's name into English)
Suite 800, 926 - 5th Ave S.W., Calgary, Alberta, Canada T2P 0N7
READ THE REST AT THE BELOW LINK - AS ITS TO BIG TO POST ON AN IHUB PAGE
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6499476
MegaWest Files Annual Financial Statements
August 31, 2009 7:19 PM EDT
CALGARY, ALBERTA -- (MARKET WIRE) -- 08/31/09 -- MegaWest Energy Corp. (the "Company" or "MegaWest") (OTCBB: MGWSF), an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, is pleased to announce the filing of its annual financial statements and management's discussion and analysis for the year ended April 30, 2009.
These financial statements reflect a volatile period in the oil and gas industry, in particular, and in the global markets in general. As a result of these events, in December 2008, due to low oil prices, the Company suspended all of its capital projects, including operations at its two Missouri heavy oil projects, pending a recovery in oil prices and financing. The Company incurred significant write downs of its oil and gas properties and reported a net loss of $37,194,937, ($0.29) per share basic and diluted, for the year ended April 30, 2009, compared with a net loss of $17,903,023, ($0.23) per share, for the year ended April 30, 2008.
As the common shares trade on the OTC Bulletin Board we file an annual report on Form 20-F with the SEC. This filing will include a supplemental note entitled "Reconciliation to United States GAAP" as at April 30, 2009 and 2008 and for each of the years in the three-year period ended April 30, 2009. In completing the above noted financial statements the Company became aware that certain 2008 comparative amounts in this supplemental note will need to be restated for the correction of clerical errors and a Texas property cost write-down.
The changes to the 2008 comparative amounts in the United States GAAP supplementary note are:
- Share capital increases by $10,066,638 with a corresponding decrease in the warrants amount. The transfer to share capital of an amount for warrants exercised in 2008 had been reflected as a $5,033,319 increase in the warrants amount rather than as a reduction in the warrants amount.
- Oil and gas assets increase by $11,515,824 and share capital decreases by $8,599,442. A component of a 2007 entry to record the acquisition of certain properties had not been properly reflected in the 2008 reported amounts.
- Oil and gas assets decrease by $21,691,160 and the 2008 reported loss, comprehensive loss and accumulated deficit from exploration stage increase by a corresponding amount. Texas properties were written down to $300,000 in the 2008 Canadian GAAP financial statements; these properties should have been written-down to the same amount for United States GAAP purposes.
The 2008 supplemental note and accompanying KPMG LLP auditors' report thereon included in the 2008 Form 20-F should no longer be relied upon. The 2009 Form 20-F reflecting the change will be filed before September 15, 2009.
Some of the Company's significant achievements and milestones during the past year and to date include:
- An independent reserves and resource evaluation was completed to confirm oil prospectivity on the Company's lands in Missouri, Kansas and Kentucky. In that report, the best estimate contingent resource was estimated at 429.14 million barrels petroleum initially-in-place (PIIP) and the best estimate prospective resource was estimated at 301.52 million barrels PIIP across a combined 44,500 acres of the Company's leases (as more fully described in the Company's July 15, 2009 press release);
- Demonstrated oil production from the Marmaton, Missouri pre-commercial project that yielded over 8,812 barrels of oil sales with field gate pricing up to 80% of West Texas Intermediate (WTI) posted price;
- Built two 500 barrel of oil per day steam drive production facilities, drilled 51 exploration/delineation wells with an 86% success rate, completed 148 development wells in Missouri;
- Completed the acquisition and processing of 2D seismic in Montana; and
- Recently completed a financing whereby it raised US$4.2 million and MegaWest is currently in the process of re-starting its Missouri projects.
The Canadian filings can be found at www.sedar.com and the United States filing at www.sec.gov.
R. William Thornton, President & CEO
Notes:
The following are excerpts from the definitions of resources and reserves, contained in Section 5 of the COGE Handbook, which is referenced by the Canadian Securities Administrators in "National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities".
A. Fundamental Resource Definitions
Total Petroleum Initially-In-Place (PIIP) (formerly referred to as Original Oil-in-Place or OOIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").
Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially in place includes production, reserves, and contingent resources; the remainder is unrecoverable.
Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be sub-classified based on development and production status. Other criteria that must also be met for the classification of reserves are provided in (Section 5.5 of the COGE Handbook).
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. (Criteria for determining commerciality are further detailed in the COGE Handbook Section 5.3.4).
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.
B. Uncertainty Categories for Resource Estimates
The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or by a probability distribution. Resources should be provided as low, best, and high estimates as follows:
Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
This approach to describing uncertainty may be applied to reserves, contingent resources, and prospective resources. There may be significant risk that sub-commercial and undiscovered accumulations will not achieve commercial production. However, it is useful to consider and identify the range of potentially recoverable quantities independently of such risk.
C. Commercial Risk Applicable to Resource Estimates
Estimates of recoverable quantities are stated in terms of the sales products derived from a development program, assuming commercial development. It must be recognized that reserves, contingent resources, and prospective resources involve different risks associated with achieving commerciality. The likelihood that a project will achieve commerciality is referred to as the "chance of commerciality". The chance of commerciality varies in different categories of recoverable resources as follows:
Reserves: To be classified as reserves, estimated recoverable quantities must be associated with a project(s) that has demonstrated commercial viability. Under the fiscal conditions applied in the estimation of reserves, the chance of commerciality is effectively 100 percent.
Contingent Resources: Not all technically feasible development plans will be commercial. The commercial viability of a development project is dependent on the forecast of fiscal conditions over the life of the project. For contingent resources the risk component relating to the likelihood that an accumulation will be commercially developed is referred to as the "chance of development". For contingent resources the chance of commerciality is equal to the chance of development.
Prospective Resources: Not all exploration projects will result in discoveries. The chance that an exploration project will result in the discovery of petroleum is referred to as the "chance of discovery". Thus, for an undiscovered accumulation the chance of commerciality is the product of two risk components - the chance of discovery and the chance of development.
Forward-Looking Statements
This press release contains forward-looking information and statements including opinions, assumptions, estimates and expectations of future employee retention. Forward-looking statements include information that does not relate strictly to historical or current facts. When used in this document, the words "anticipate", "believe", "estimate", "expect", "forecast", "intent", "may", "project", "plan", "potential", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to a wide range of known and unknown risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and the financial statements and Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and the financial statements and Form 51-102F1 filed in Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Cusip: #585168 107
Contacts:
MegaWest Energy Corp.
George T. Stapleton, II
Chairman of the Board
281.499.7498
MegaWest Energy Corp.
R. William (Bill) Thornton
President and CEO
403.984.6342
investor.relations@megawestenergy.com
www.megawestenergy.com
http://www.streetinsider.com/Press+Releases/MegaWest+Files+Annual+Financial+Statements/4911936.html
MegaWest Announces Strategic Agreement with Iroquois Capital Opportunity Fund
August 31, 2009 11:59 AM EDT
CALGARY, ALBERTA -- (MARKET WIRE) -- 08/31/09 -- MegaWest Energy Corp. (OTCBB: MGWSF) (the "Company" or "MegaWest"), an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, announced today that it has signed agreements with investors (the "Investors") led Iroquois Capital Opportunity Fund, L.P., ("ICO Fund") as the lead investor and with Mega Partners 1, LLC ("MP1") of which ICO Fund is a member for a multi-faceted plan to recapitalize the Company and enable the restart of oil production at its Missouri enhanced recovery projects.
The Investors will become significant shareholders in the Company through the purchase of US$2.2 million of Series A Convertible Preferred Shares and MP1 will become a 10% working interest partner in the two existing Missouri projects which have a combined design capacity of 1,000 barrels of oil per day, and up to a 20% working interest partner in future development on 15,313 acres of the Company's oil and gas leases located in Missouri and Kansas (the "Deerfield Area"). The proceeds from the initial funding and working interest sale will be used to restart both projects and restore production. This is a strategic, long-term relationship between the Investors, MP1 and the Company involving options for future financing, options for future working interest participation, and cooperation with Iromad LLC ("Iromad"), a world-class technology company. It is expected that this technical cooperation will lead to process and technical improvements that will result in higher economic return and increased recovery of oil from these leases. Restoration of production at the existing plants, continued high oil prices, and access to additional capital will lead to the construction of additional plants in the area.
The Company signed agreements with the Investors and MP1, the significant terms of which are as follows:
- The Company sold a 10% working interest in the Deerfield Area for US$2,000,000 to MP1.
- MP1 has the option to acquire up to an additional 10% interest in future projects within the Deerfield Area.
- The Company issued to the Investors 22,000 Series A convertible preferred shares, with a stated value of $100 each (the "Series A Preferred Shares"), for gross proceeds of US$2,200,000. Based on their stated value, the Series A Preferred Shares are convertible into common shares at US$0.07 per common share. A quarterly cumulative dividend based upon the stated value of the Series A Preferred Shares is payable, at the Company's election, as to either 5% cash or 7.5% in additional Series A Preferred Shares. The Series A Preferred Shares also have a provision whereby upon liquidation, dissolution, winding up or sale of the Company any outstanding Series A Preferred Shares will be paid out ahead of the common shares at a rate of two times the stated value of the Series A Preferred Shares. After 12 months from the date of issue, the Company may force the conversion of the Series A Preferred Shares provided: i) production from the Deerfield Area is 15,000 barrels of oil in a 30 day period; ii) the common shares have traded at or above US$0.25 per share for the preceding 20 consecutive trading days; and iii) the daily average dollar trading volume has been in excess of US$75,000 per day for the same 20 day period.
- In conjunction with the Series A Preferred Share issuance, the Company has also issued to the Investors 15,400,000 warrants. Each warrant allows the holder to purchase a common share at US$0.25 per share until August 28, 2014. After May 28, 2010 a cashless conversion option is provided only with respect to warrant shares not included for unrestricted public resale in an effective registration statement on the date notice of exercise is given to the Company.
- Until twelve months following the first occasion upon which the Company produces 3,000 barrels over a 30 day period (100 barrels per day average) from the Deerfield Area, the Investors have the option to purchase up to 20,000 Series B convertible preferred shares with a stated value of $100 each (the "Series B Preferred Shares"), for up to US$2,000,000 on similar terms to the Series A Preferred Shares except the conversion price is US$0.10 per common share. After 12 months from the date of issue, the Company may force the conversion of the Series B Preferred Shares provided: i) production from the Deerfield Area is 30,000 barrels of oil in a 30 day period; ii) the common shares have traded at or above US$0.35 per share for the preceding 20 consecutive trading days; and iii) the daily average dollar trading volume has been in excess of US$150,000 per day for the same 20 day period. In conjunction with the Series B Preferred Share issuance, the Company will issue to the Investors up to 10,000,000 warrants. Each warrant allows the holder to purchase a common share at US$0.35 per share for a period of five years from issuance. After nine months from the date of issuance, a cashless conversion option is provided only with respect to warrant shares not included for unrestricted public resale in an effective registration statement on the date notice of exercise is given to the Company.
"ICO Fund brings a great deal to the table, including a strong technical team in Iromad, who will be providing consulting services to MegaWest. Iromad's team is well known for its expertise in the delivery of technologies for the enhanced development of mature assets and non-conventional oil and gas projects, providing cutting edge solutions to issues faced by national oil companies and independent petroleum producers such as MegaWest. We are pleased to have arrived at a refinancing solution which is significantly less dilutive to our shareholders than a pure equity raise, and are excited about getting back to the business of producing oil," said MegaWest President Bill Thornton.
ICO Fund Managing Partner Scot Cohen said, "We are excited at the potential from restarting and ramping production at the Marmaton River and Grassy Creek projects in Missouri and building additional production plants throughout the Deerfield Area leases in the future."
About Iroquois Capital Opportunity Fund, L.P.
Iroquois Capital Opportunity Fund, L.P. ("ICO Fund") is a private equity fund focused on investments in the oil and gas industry. ICO Fund invests in low risk oil and gas assets and in technologies that increase production, improve recovery factor and reduce costs to apply these technologies to change the economics of the targeted assets. The fund is managed by a seasoned team that includes former senior national oil company executives, former senior oil service executives, oilfield technology venture capitalists and financiers experienced at structuring investments in the oil and gas industry.
About Iromad LLC
Iromad was formed through the convergence of veteran oil and gas professionals, innovative technologists, leading entrepreneurs, and experienced investment professionals. Iromad's vision is to facilitate the delivery of technologies for the enhanced development of mature assets and unconventional hydrocarbons, providing cutting-edge solutions to issues faced by national oil companies and independent petroleum producers. Iromad focuses on solutions that will increase recoverable reserves, enhance production, and reduce lifting costs. This demands a long-term perspective, breadth and depth of expertise, and solid project management in order to outlast the cyclic nature of oil and gas commodity markets.
R. William Thornton, President & CEO
Forward-Looking Statements
This press release contains forward-looking information and statements including opinions, assumptions, estimates and expectations of future employee retention. Forward-looking statements include information that does not relate strictly to historical or current facts. When used in this document, the words "anticipate", "believe", estimate", "expect", "forecast", "intent", "may", "project", "plan", "potential", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to a wide range of known and unknown risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and the financial statements and Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and the financial statements and Form 51-102F1 filed in Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Cusip: #585168 107
Contacts:
MegaWest Energy Corp.
George T. Stapleton, II
Chairman of the Board
281.499.7498
MegaWest Energy Corp.
R. William (Bill) Thornton
President and CEO
403.984.6342
investor.relations@megawestenergy.com
www.megawestenergy.com
Iroquois Capital Opportunity Fund, L.P.
641 Lexington Avenue, 26th Floor
New York, NY 10022
212.974.3070
http://www.streetinsider.com/Press+Releases/MegaWest+Announces+Strategic+Agreement+with+Iroquois+Capital+Opportunity+Fund/4910400.html
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2009
Commission File No. 000-49760
(Translation of registrant's name into English)
Suite 800, 926 - 5th Ave S.W., Calgary, Alberta, Canada T2P 0N7
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) o
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
The Company signed a project Agreement with Electro-Petroleum, Inc. on July 13, 2009
SEE EXHIBIT 10.1
On July 16, 2009 MegaWest Energy Corp. issued a press release announcing that it had reached an agreement with Electro-Petroleum, Inc. (“EPI”) to evaluate the testing and potential commercial application of its proprietary Electrically Enhanced Oil Recovery (“EEOR”) technology for recovery of oil from the Clear Creek Area of the Company’s Missouri leases. MegaWest and EPI will form an Engineering Review Committee to compile, analyze and assess data regarding the feasibility of conducting a Demonstration Project of EEOR. This work is to be completed by August 14, 2009. If the parties determine to proceed, an Engineering Committee will plan the Project and organize the execution of same, possibly in Q4 ‘09. Depending on results from the test, the parties may opt to wind up operations or scale up to Commercial status.
SEE EXHIBIT 99.1
Exhibit
Number
Description of Exhibit
10.1
Clear Creek, Missouri Project Agreement
99.1
News Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MEGAWEST ENERGY CORP
Date: July 16, 2009
By:
/s/ William Thornton
Name: William Thornton
Title: President/Director
EX-10.1
July 10, 2009
Electro-Petroleum, Inc.
96 Old Eagle School Road
Suite 118
Wayne, Pennsylvania, USA
19085
Attention: Mr. Philip Bell, President
RE: CLEAR CREEK, MISSOURI PROJECT AGREEMENT
The purpose of this letter is to confirm the agreement that has been reached between our companies regarding the matters set forth below.
1.
DEFINITIONS
The following terms and expressions shall have the meanings hereinafter assigned to them, namely:
(a)
“agreement” shall mean this letter Project Agreement;
(b)
“Approved Encumbrances” shall mean the applicable lessor’s royalty and any other encumbrances set forth and described in Schedule “A” hereto;
(c)
“Data” means all data, information and other documents, generated, shared or otherwise created by or on behalf of the ERC, the PPC or any of the parties hereto in connection with the Demonstration Project or otherwise in connection with this agreement;
(d)
"Demonstration Project” shall mean a project determined by the ERC to be feasible and desirable pursuant to and in accordance with paragraph 6 of this agreement and conducted pursuant to and in accordance with paragraph 7 of this agreement;
(e)
“Encumbrance” means any charge, claim, limitation, equitable interest, mortgage, lien, option, pledge, security interest, easement, encroachment, right of first refusal, adverse claim or restriction of any kind, including any restriction on or transfer or other assignment, as security or otherwise, of or relating to use, quiet enjoyment, voting, transfer, receipt of income or exercise of any other attribute of ownership;
(f)
“EPI” shall mean Electro-Petroleum, Inc., a Delaware corporation;
(g)
“EPI Technology” shall mean (a) EEOR, as improved, developed, modified, expanded or refined from time to time, and (b) any and all other Intellectual Property rights dealing with EEOR technology owned by or licensed to EPI;
(h)
“EEOR” shall mean EPI's patented Electrically Enhanced Oil Recovery technology and its related Intellectual Property, which involves, among other things, passing direct current electricity between (i) anodes located either at surface or in the oil-bearing formation in wells adjacent to producing wells and (B) cathodes located in the oil-bearing formation in producing wells;
(i)
"ERC” shall mean the Engineering Review Committee established pursuant to and in accordance with paragraph 5 of this agreement;
(j)
“Grassy Creek Project” shall mean the existing land and production facility (including gathering system, water source well, and water disposal well) owned and operated by MegaWest in the Grassy Creek area of Missouri, capable of producing roughly 500 barrels per day and currently comprised of an initial phase, made up of 15 steam injection wells and 46 production wells, all of which are fully equipped and tied in;
(k)
"Intellectual Property" means any or all of the following:
(i)
all Canada, United States and foreign patents and applications therefor and all reissues, divisions, renewals, extensions, provisionals, continuations and continuations-in-part thereof;
(ii)
trade secrets and proprietary information, including Confidential Information, trade secrets and proprietary information that are inventions (whether patentable or not), invention disclosures, improvements, know how, technology, technical data, results of experiments, formulae, specifications, procedures and tests;
(iii)
all copyrights, copyrights registrations and applications therefor and all other rights corresponding thereto;
(iv)
all industrial designs and any registrations and applications therefor;
(v)
all trade names, logos, common law trade-marks and service marks, and all trade-mark and service mark registrations and applications therefor and all goodwill associated therewith; and
(vi)
any rights similar, corresponding or equivalent to, and all documentation related to, any of the foregoing;
(l)
“Marmaton River Project” shall mean the existing land and production facility (including gathering system, water source well, and water disposal well) owned and operated by MegaWest in the Marmaton area of Missouri, capable of producing roughly 500 barrels per day and currently comprised of an initial phase, made up of 13 steam injection wells and 40 production wells, all of which are fully equipped and tied in, and a secondary phase, made up of 10 steam injection wells and 24 production wells, all of which have been drilled but which are not yet completed or tied in;
(m)
“MegaWest” shall mean MegaWest Energy Missouri Corp., a Delaware corporation;
(n)
“MegaWest Infrastructure” means all land, equipment and facilities comprising any part of the Marmaton River Project or the Grassy Creek Project;
(o)
“Missouri Project Lands” means the entire areal, stratigraphic and substance rights held by MegaWest in the Clear Creek area of Missouri, all as more particularly set forth and described in Schedule “A” hereto, to the extent that such rights remain subject to this agreement and the title documents;
(p)
“Operating Procedure” shall mean the standard form AAPL 1989 Model Form Operating Agreement, to be amended to the mutual satisfaction of the parties so as to reflect the operational realities of the recovery of petroleum substances from the Missouri Project Lands using the EPI Technology;
(q)
“Project” shall mean an area of land and the related mineral rights upon which the parties determine to execute enhanced oil recovery operations employing EEOR, subject to the terms and conditions of this agreement;
(r)
“Project IP” means all Intellectual Property developed in connection with the Demonstration Project or otherwise in connection with this agreement;
(s)
“Project Lands” shall have the meaning set forth in paragraph 6 of this agreement;
(t)
“PPC” shall mean a Project Planning Committee established pursuant to and in accordance with paragraph 6 of this agreement;
(u)
“Regulations” shall mean the applicable federal laws and laws of the state of Missouri pertaining to drilling and production spacing units; and
(v)
“title documents” shall mean the documents set forth and described as such in Schedule “A” and any renewals or extensions thereof or further title documents issued pursuant thereto insofar as they relate to the Missouri Project Lands.
2.
SCHEDULES
The following schedules are attached hereto and incorporated into this agreement:
(a)
Schedule “A”, which sets forth the Missouri Project Lands, the title documents and the Approved Encumbrances.
3.
MEGAWEST REPRESENTATIONS
MegaWest makes the following representations and warranties to EPI:
(a)
MegaWest does not warrant title to the Missouri Project Lands, except that it warrants that, other than the Approved Encumbrances, the Missouri Project Lands held by MegaWest are free and clear of all liens, adverse claims, charges and encumbrances created by, through or under MegaWest. During the term of this Agreement, MegaWest agrees not to transfer or assign any interest in the Missouri Project Lands other than as provided for hereunder unless the transferee assumes the obligations under this Agreement in respect of such transferred portion of the Missouri Project Lands.
(b)
MegaWest is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, and has full corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted and (ii) duly qualified or licensed as a foreign corporation or other entity to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its business makes such qualification or licensing necessary.
(c)
MegaWest has heretofore furnished to EPI a complete and correct copy of the certificate of incorporation and bylaws or equivalent organizational documents, each as amended to date, of MegaWest, and such certificates of incorporation, bylaws or equivalent organizational documents are in full force and effect MegaWest is not in violation of any of the provisions of its certificate of incorporation, bylaws or equivalent organizational documents.
(d)
MegaWest has full corporate power and authority to execute and deliver this agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by MegaWest of this agreement and the consummation by MegaWest of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action. This agreement has been duly executed and delivered by MegaWest.
(e)
The execution, delivery and performance by MegaWest of this agreement, and the consummation of the transactions contemplated hereby, do not and will not: (i)conflict with or violate the certificate of incorporation or bylaws or equivalent organizational documents of MegaWest; (ii) conflict with or violate any law applicable to MegaWest; or (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of time or both, would become a default) under, require any consent of or notice to any person pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument, obligation or other contract to which MegaWest is a party.
4.
EPI REPRESENTATIONS
EPI makes the following representations and warranties to MegaWest:
(a)
EPI a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, and has full corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted and (ii) duly qualified or licensed as a foreign corporation or other entity to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its business makes such qualification or licensing necessary.
(b)
EPI has heretofore furnished to MegaWest a complete and correct copy of the certificate of incorporation and bylaws or equivalent organizational documents, each as amended to date, of EPI, and such certificates of incorporation, bylaws or equivalent organizational documents are in full force and effect EPI is not in violation of any of the provisions of its certificate of incorporation, bylaws or equivalent organizational documents.
(c)
EPI has full corporate power and authority to execute and deliver this agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance by EPI of this agreement and the consummation by EPI of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action. This agreement has been duly executed and delivered by EPI.
(d)
The execution, delivery and performance by EPI of this agreement, and the consummation of the transactions contemplated hereby, do not and will not: (i) conflict with or violate the certificate of incorporation or bylaws or equivalent organizational documents of EPI; (ii) conflict with or violate any law applicable to EPI; or (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of time or both, would become a default) under, require any consent of or notice to any person pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument, obligation or other contract to which EPI is a party.
5.
PHASE ONE - ENGINEERING REVIEW COMMITTEE
Forthwith upon the execution of this agreement, MegaWest and EPI shall proceed to establish an Engineering Review Committee (the “ERC”). Such ERC shall be comprised of a minimum of two representatives of MegaWest and a minimum of two representatives of EPI. The ERC shall compile, analyze and assess information in respect of the Missouri Project Lands, the MegaWest Infrastructure (to the extent it shall be determined to be relevant) and the EPI Technology with a view toward determining whether it is feasible and desirable to conduct a demonstration project (a “Demonstration Project”) to establish a plan for employing the EPI Technology in an effort to enhance oil-recovery from all or some portion of the Missouri Project Lands. The ERC shall diligently conduct the compilation, analysis and assessment of information in respect of the Missouri Project Lands with the intent that a final recommendation be made to EPI and MegaWest, not later than August 14, 2009, as to whether or not to proceed with a Demonstration Project employing the EPI Technology to enhance oil recovery from the Missouri Project Lands. All activities undertaken by the ERC shall be undertaken in accordance with the terms and conditions of this agreement and the Regulations. The ERC shall develop a budget for all of its activities detailing responsibility for all costs and expenses, which budget shall be mutually acceptable to both EPI and MegaWest.
6.
PHASE TWO - PLANNING OF DEMONSTRATION PROJECT
If, upon the ERC having completed the compilation, and assessment of information in respect of the Missouri Project Lands, the ERC makes a final recommendation to EPI and MegaWest that they should proceed with a Demonstration Project employing the EPI Technology in an effort to enhance oil recovery from the Missouri Project Lands, MegaWest and EPI shall forthwith proceed to establish a project planning committee (the “PPC”). Such PPC shall be comprised of business and technical personnel of each of MegaWest and EPI, as the parties may jointly determine to be appropriate in the circumstances of the Demonstration Project. The PPC shall diligently conduct the selection of a location for the Demonstration Project, the determination of the scope of the Demonstration Project, the determination of the lands (including applicable mineral rights) to be encompassed within the Demonstration Project (the "Project Lands"), the determination of the design of the Demonstration Project, the determination of a timetable for the implementation of the Demonstration Project, and the setting of performance milestones by which the success or failure of the Demonstration Project shall be determined. The overarching goal of the Demonstration Project shall be to test and assess the efficacy of EEOR in the recovery of heavy oil from the Missouri Project Area. All activities undertaken by the PPC shall be undertaken in accordance with the terms and conditions of this agreement and the Regulations. The PPC shall develop a budget for all of its activities detailing responsibility for all costs and expenses, which budget shall be mutually acceptable to both EPI and MegaWest.
7.
PHASE THREE - UNDERTAKING OF DEMONSTRATION PROJECT
If, upon the ERC having completed the compilation, analysis, and assessment of information in respect of the Missouri Project Lands, the ERC shall have made a final recommendation to EPI and MegaWest that they should proceed with a Demonstration Project employing the EPI Technology in an effort to enhance oil recovery from the Missouri Project Lands; then the Demonstration Project shall proceed pursuant to the terms set out below:
(i)
MegaWest shall make available for the Demonstration Project such of the Missouri Project Lands as the PPC may determine to be desirable, at no direct cost to EPI;
(ii)
MegaWest shall make available for the Demonstration Project such of the MegaWest Infrastructure as the PPC may determine to be desirable, at a cost to be mutually agreed by MegaWest and EPI and on terms and conditions based on normal petroleum joint venture practices to be mutually agreed by MegaWest and EPI;
(iii)
EPI shall make available for the Demonstration Project such of the EPI Technology as the PPC may determine to be desirable, at no direct cost to MegaWest;
(iv)
MegaWest shall make available for the Demonstration Project such of its field operations staff, engineering staff, geological staff, land staff, as the PPC may determine to be desirable in order to allow for the proper planning, execution, management and reporting of all Demonstration Project activities, on a cost-of-service basis to be agreed upon by MegaWest and EPI. Such costs will be subject to a mutually agreed budget and the parties agree that such costs will not exceed 120% of the said budget;
(v)
EPI shall make available for the Demonstration Project at no direct cost to MegaWest such of its staff as may be required to operate and monitor the equipment and processes related to EEOR, which staff will act in concert with the staff of MegaWest within the established parameters of the Demonstration Project;
(vi)
MegaWest and EPI shall establish mutually agreeable milestones for the execution of all activities related to the Demonstration Project as a means to measure and define the outcomes and results of the Demonstration Project;
(vii)
in consideration of the contributions by EPI to the Demonstration Project, EPI shall be entitled to 75% of any production of petroleum substances from the Project Lands until recovery of all of its costs, including for certainty MegaWest's staff costs under subsection (iv) above. If the Demonstration Project is determined to be successful in accordance with paragraph 8 below, MegaWest shall, immediately following such determination, transfer and convey a 25% working interest in the mineral rights in and to the Project Lands;
(viii)
if, within a specific period of time to be determined by MegaWest and EPI and based upon milestones to be mutually agreed to by MegaWest and EPI, it is determined that the use of the EPI Technology in an effort to enhance oil recovery from the Missouri Project Lands has not been successful, MegaWest and EPI shall promptly settle all accounts related to the Demonstration Project and discontinue the Demonstration Project. In such case, EPI shall not have earned or acquired any interest in and to the Missouri Project Lands other than the right to recover its costs out of production as provided for in the first sentence of subsection vii above, including without limitation any right to any share of future production from the Missouri Project Lands, or any other interest in the in situ mineral rights or reserves held by MegaWest in and to the Missouri Project Lands; and
(ix)
The following liability provisions shall apply:
(A)
Each party agrees to assume all liability for injury, death or property damage suffered by any of its employees or agents or the employees or agents of its subcontractors in connection with the work conducted by them on the Demonstration Project.
(B)
Each party agrees to assume all liability for injury, death or property damage (including loss of use of property) suffered by any third party or, arising out of or incidental to the work conducted by them on the Demonstration Project.
(C)
MegaWest agrees to release, defend, indemnify and hold EPI harmless from and against any and all loss, cost, damage or expense of every kind and nature associated with reservoir loss or damage, unless such damage is caused by the gross negligence or willful misconduct of EPI.
(D)
In no event shall either party be liable to the other under this contract for indirect, special, incidental or consequential damages, including but not limited to, loss of profits, loss of use of assets or loss of product or facilities downtime.
(E)
Each party shall maintain industry typical insurance.
8.
PHASE FOUR - FUTURE DEVELOPMENT
(a)
If, within a specific period of time to be determined by MegaWest and EPI and based upon milestones to be mutually agreed to by MegaWest and EPI, it is determined that the use of the EPI Technology in an effort to enhance oil recovery from the Missouri Project Lands has been successful, whether as originally contemplated or as adapted by field experience during the conduct of the Demonstration Project, MegaWest and EPI shall:
(i)
negotiate diligently and in good faith in an effort to determine how best to apply EEOR to the balance of the Missouri Project Lands not included within the parameters of the Demonstration Project; and
(ii)
negotiate diligently and in good faith an Operating Agreement to govern the lands underlying the Demonstration Project and potential future projects on the Missouri Project Lands and to govern the determination of Projects and the participation of EPI and MegaWest in such Projects.
(b)
MegaWest and EPI agree that the Operating Agreement shall contain typical industry terms for agreements covering similar projects in similar circumstances and shall include, but not be limited to, the following terms and conditions:
(i)
an operating committee (the "Operating Committee") and a technical committee (the "Technical Committee") will be appointed with members from each of EPI and MegaWest;
(ii)
the Operating Procedure shall apply;
(iii)
MegaWest shall be the initial operator;
(iv)
each of MegaWest and EPI shall bear all costs and expenses in accordance with their respective interests in the applicable lands and shall be entitled to receive and retain all revenues from the sale of production from the applicable lands in accordance with their respective working interests;
(v)
future development of the Missouri Project Lands will be pursued on the basis of each successive Project being nominated by the Technical Committee, or by either Party, and approved by the Operating Committee pursuant to the terms of the Operating Agreement;
(vi)
upon the approval of a Project (the size of which shall not exceed 640 acres), a 25% interest in the lands and applicable in situ mineral rights underlying the lands comprising the Project shall be conveyed by MegaWest to EPI;
(vii)
in the event the Demonstration Project is successful and EPI advises MegaWest that it does not wish to proceed with a nominated Project, MegaWest shall have the right to proceed with such Project at 100% working interest, EPI and MegaWest agree to enter into a licence agreement pursuant to which EPI would grant a licence to MegaWest with respect to the EPI Technology to permit MegaWest to use such EPI Technology on the nominated Project Lands in exchange for the payment by MegaWest to EPI of a 10% net profits interest with respect to all production from the nominated Project Lands. Such licence shall be on terms mutually acceptable to the parties and shall include the establishment of a technology committee including representatives of EPI to oversee the application of the technology and ensure the appropriate protection of EPI's rights in the EPI Technology and Project IP;
(viii)
in the event the Demonstration Project is successful and MegaWest advises EPI that it does not wish to proceed with a nominated Project, EPI shall have the right to proceed with such Project at 100% working interest in exchange for the payment by EPI to MegaWest of a 10% net profits interest with respect to all production from the nominated Project Lands;
(ix)
in the event EPI wishes to acquire a 25% working interest in all or substantially all of the Missouri Project Lands prior to the commencement of the first Project, the sale to EPI by MegaWest of such working interest ownership may be negotiated based upon on the value attributed thereto by an independent third party evaluator; such purchase and sale will, however, only occur in the event that the terms thereof shall be mutually agreed to by MegaWest and EPI;
(x)
upon either the conveyance of an interest on declaration of a Project, or upon the purchase of an interest pursuant to subsection (vi) above, the joint ownership of the lands which are subject to such conveyance or purchase and sale shall be governed by the Operating Agreement; and
(xi)
MegaWest and EPI shall discuss whether there is a basis for the expansion of their joint activities to other lands owned by MegaWest and, if such basis is determined to exist, to determine the basis on which they might both agree to the expansion of their joint activities to other lands owned by MegaWest and to which other lands owned by MegaWest such joint activities might be expanded.
9.
EXCLUSIVITY
(a)
If a Demonstration Project is not proceeded with, or if the Demonstration Project is proceeded with and is unsuccessful, MegaWest will not use EPI’s Technology on the Missouri Project Lands at any time in the future, without EPI’s consent and participation.
10.
DATA AND INTELLECTUAL PROPERTY
(a)
All Data shall be and remain the property of the party contributing same. Intellectual property rights, including patent rights, for any Intellectual Property developed with respect to the Demonstration Project or otherwise in connection with this agreement or the EPI Technology shall vest fully and unconditionally in EPI, and EPI shall have the sole and exclusive right to pursue patent protection for such Intellectual Property. MegaWest agrees to and hereby assigns all of MegaWest’s right, title, and interest in and to all intellectual property rights, including patent rights, for any Intellectual Property developed with respect to the Demonstration Project or otherwise in connection with this agreement or the EPI Technology. MegaWest agrees to execute, whenever requested by EPI, all patent applications, assignments, lawful oaths and any other papers which EPI may deem necessary or desirable for securing to EPI or for maintaining for EPI all the intellectual property, patent(s), patent application(s) and equivalent rights hereby assigned and agreed to be assigned; all without further compensation to MegaWest.
(b)
The Parties recognize that EPI is not required or obligated to disclose EPI Technology under the terms of this Agreement. This Agreement shall not be construed as granting a license to any EPI Technology.
(c)
MegaWest agrees that at all times EPI shall be free to negotiate and/or enter into business transactions with third parties with respect to the development of other projects utilizing the EPI Technology in Canada and elsewhere, without restriction or limitation.
11.
CONFIDENTIAL INFORMATION
(a)
All Confidential Information shall be received in confidence and shall be used only for the purposes of this agreement. “Confidential Information” means any proprietary or confidential information, samples, technical data, trade secrets or know-how (whether or not patentable or copyrightable) that is owned or controlled by the party disclosing the information (the “Disclosing Party”) or its subsidiaries of affiliates, including, but not limited to, research, product plans, products, service plans, services, customer lists and customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sale and profit figures, finances and other business information disclosed to the other party (the “Receiving Party”) by or on behalf of the Disclosing Party either directly or indirectly, in writing, orally or by drawings or inspection of documents or other tangible property. Confidential Information shall include any notes, analyses, compilations, studies, memoranda or other documents prepared by the Receiving Party that contain, reflect or are based upon, in whole or in part, any Confidential Information. For clarification, the Parties shall treat the data collected and generated pursuant to the Demonstration Project, including the Data and this Agreement as Confidential Information of both parties. Confidential Information shall not include information which:
(i)
is publicly available prior to the date of the agreement or becomes publicly available thereafter through no breach of this agreement by the Receiving Party;
(ii)
was known to the Receiving Party prior to the date of the agreement as shown by written documents;
(iii)
is required to be disclosed pursuant to applicable laws, rules, regulations or government requirement or court order, provided, however, that the Receiving Party shall promptly advise the Disclosing Party of its notice of any such requirement or order and cooperate reasonably with the Disclosing Party in an attempt to limit or avoid such disclosure;
(iv)
is independently developed, without reference to or reliance upon the Confidential Information, by personnel of the Receiving Party who had no access to the Confidential Information; or
(v)
was received by the Receiving Party from a third party that is not obligated to keep the information confidential.
(b)
A specific disclosure made by the Disclosing Party to the Receiving Party shall not be deemed to be within the foregoing exceptions merely because it is embraced by a general disclosure known to the public or in the possession of the Receiving Party. In addition, any combination of aspects of a disclosure shall not be considered to be within the foregoing exceptions merely because individual elements thereof are known to the public or in the Receiving Party’s possession, unless the combination and its principles are known to the public or in the Receiving Party’s possession.
(c)
Each party warrants that it will use and disclose Confidential Information only in accordance with this agreement. Except as permitted herein, neither party shall disclose any Confidential Information provided to it under the terms of this agreement without the express written permission of the Disclosing Party. The Receiving Party shall use the same steps that it takes to protect its own similar confidential and proprietary information, which shall not be less than a reasonable standard of care, to hold in confidence the Disclosing Party’s Confidential Information. The Receiving Party shall limit access to Confidential Information to those representatives, counsel, directors, officers, employees and agents of the Receiving Party (each, a “Representative,” and collectively, the “Representatives”) who have a need to know such information in connection with the purposes of this agreement provided that such Representative is informed by the Receiving Party of the confidential nature of such information and of the confidential undertakings by the Receiving Party and such Representative is bound to the Receiving Party by an obligation of confidentiality no less restrictive than this agreement. The Receiving Party shall be responsible for any breach of this agreement by its Representatives.
(d)
The obligations of non-use and confidentiality as set forth herein shall survive termination of this Agreement and shall remain in effect with respect to any particular item of Confidential Information until the Receiving Party can document that it falls into one of the exceptions (i) – (v) above.
12.
TERMINATION
(a)
Either party may terminate this Agreement upon written notice and without penalty in the following circumstances:
(i)
the failure of either Party to carry out a material duty or obligation under this Agreement, which default is not cured to the reasonable satisfaction of the non-defaulting Party within 30 days of providing notice in writing to the defaulting Party detailing the nature of the default;
(ii)
the bankruptcy or insolvency of the other Party or if the other Party seeks the protection of any law for bankrupt or insolvent debtors; or
(iii)
the mutual agreement of both Parties to terminate the Agreement.
(b)
EPI may terminate this Agreement upon written notice and without penalty if an Operating Agreement (as contemplated in Section 8(b)) is not executed within twelve months of the date of execution of this Agreement.
(c)
The provisions of Sections 9, 10, 11, 12, 13 and 14 shall survive completion or earlier termination of this Agreement.
13.
INDEMNIFICATION
Each party (the “Indemnifying Party”) agrees to indemnify and hold harmless the other party, its directors, officials, employees, and agents (each, an “Indemnified Party”) from and against any and all losses, claims, damages, actions, causes of action, costs and expenses (including reasonable legal fees) (“Loss”) brought by an unrelated third party that alleges that the Indemnifying Party caused such Loss by reason of any gross negligence, or intentional wrongful act or omission by the Indemnifying Party, its agents, employees, officers, or directors in direct connection with this agreement or any breach of this agreement. Notwithstanding the foregoing, in no event shall an Indemnifying Party, its directors, officers, contractors, agents or employees be liable for any punitive, exemplary, aggravated, indirect, consequential, incidental or special damages.
14.
NOTICES
The addresses for service of the parties hereto shall be as follows:
Electro-Petroleum, Inc.
96 Old Eagle School Road
Suite 118
Wayne, Pennsylvania, USA
19085
Attention: Mr. Philip Bell, President
Fax: (610) 964-8570
MegaWest Energy Missouri Corp.
c/o
MegaWest Energy Corp.
800, 926- 5th Ave. SW
Calgary, AB, Canada
T2P 0N7
Attention: Land Department Fax: (403) 984-6343
All notices, communications and statements required, permitted or contemplated hereunder shall be in writing, and shall be delivered as follows:
(a)
by personal service on a party at the address of such party set out above, in which case the item so served shall be deemed to have been received by that party when personally served;
(b)
by facsimile transmission to a party to the fax number of such party set out above, in which case the item so transmitted shall be deemed to have been received by that party when transmitted; or
(c)
except in the event of an actual or threatened postal strike or other labour disruption that may affect mail service, by mailing first class post, postage prepaid, to a party at the address of such party set out above, in which case the item so mailed shall be deemed to have been received by that party on the fifth day following the date of mailing.
Each of EPI and MegaWest may from time to time change their respective addresses for service by giving written notice to the other.
15.
MISCELLANEOUS
(a)
Wherever any term or condition of any schedule conflicts or is at variance with any term condition in the body hereof the latter shall prevail. In the event of any conflict or inconsistency between the provisions of this agreement and the title documents the provisions of the title documents shall prevail.
(b)
This agreement and the relationship amongst the parties hereto shall be construed and determined according to the laws of the Province of Alberta, without regard to conflicts of laws principles.
(c)
This agreement may be executed in separate counterparts each of which taken together shall comprise a complete agreement.
If the foregoing is in accordance with your understanding of the agreement reached amongst our companies, would you please indicate your acknowledgement and acceptance by signing in the space provided and returning one copy of this letter agreement to this office.
Yours very truly,
MEGAWEST ENERGY MISSOURI CORP.
ACKNOWLEDGED AND AGREED TO THIS 13th day of July, 2009. ELECTRO-PETROLEUM, INC.
EX-99.1
NEWS RELEASE
OTC BB: MGWSF Cusip: #585168 107
MegaWest Signs Advanced Technology Agreement with EPI
Calgary, Alberta; July 16, 2009 – MegaWest Energy Corp., (the “Company” or “MegaWest”), an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, announced today that it has reached an agreement with Electro-Petroleum, Inc. (“EPI”) to evaluate the testing and potential commercial application of its proprietary Electrically Enhanced Oil Recovery (“EEOR”) technology for recovery of oil from the Clear Creek Area of the Company’s Missouri leases. Successful application of this technology will add significant resources and reserves to the Company on these leases which are currently not accessible using steam drive technology.
EEOR involves passing direct current electricity between electrodes in producing wells and electrodes either located at surface or in the oil zone in adjacent wells. Previous laboratory and field tests appear to demonstrate that the resulting electrical field has three operating mechanisms: i) Resistance or joule heating (formations have been heated to several hundred degrees Fahrenheit); ii) Electro-kinetic effect (enhanced pressure gradient toward the producing well); and, iii) Electro-chemical effect (large molecules are degraded to smaller molecules by way of oxidation and reduction reactions resulting in a crude oil having higher gravity and lower viscosity).
MegaWest and EPI will jointly undertake the review and design of a demonstration project for the EEOR process. Favorable results from the feasibility study could lead to the commencement of demonstration project construction during the fourth quarter of 2009 with operations to follow immediately. The cost of the demonstration project will be borne by EPI, with support in kind from MegaWest. Successful results from the demonstration project would lead to the design and implementation of a commercial scale project on leases held by MegaWest. EPI would earn a working interest on all acreage developed using the EEOR technology. MegaWest’s Clear Creek leases cover nearly 19,000 acres in an area suitable for the application of this process. This agreement marks a significant milestone in the Company’s efforts to identify, test and apply new technologies to the economic exploitation of untapped heavy oil resources.
The Clear Creek Area leases are separate from, and in addition to, about 15,000 acres in the Company’s Deerfield Area of Missouri and Kansas, which have been assigned reserves and resources based on the two steam drive projects implemented by MegaWest (see Press Release dated July 15, 2009). The Company is pursuing options to restart these steam projects in light of the current favorable oil and natural gas prices.
R. William Thornton
President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
George T. Stapleton, II, Chairman of the Board
R. William (Bill) Thornton, President and CEO
Telephone: 403.984.6342
Suite 800, 926 – 5th Avenue SW
Calgary, AB T2P 0N7
Email: investor.relations@megawestenergy.com
Website: www.megawestenergy.com
Forward-Looking Statements
This press release contains forward-looking information and statements including opinions, assumptions, estimates and expectations of future employee retention. Forward-looking statements include information that does not relate strictly to historical or current facts. When used in this document, the words “anticipate”, “believe”, estimate”, “expect”, “forecast”, “intent”, “may”, “project”, “plan”, “potential”, “should” and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to a wide range of known and unknown risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and the financial statements and Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and the financial statements and Form 51-102F1 filed in Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6422268
July 16, 2009 9:30 AM EDT
CALGARY, ALBERTA -- (MARKET WIRE) -- 07/16/09 -- MegaWest Energy Corp. (the "Company" or "MegaWest") (OTCBB: MGWSF), an independent oil and gas company, specializing in non-conventional oil and gas projects with a focus on North American heavy oil, announced today that it has reached an agreement with Electro-Petroleum, Inc. ("EPI") to evaluate the testing and potential commercial application of its proprietary Electrically Enhanced Oil Recovery ("EEOR") technology for recovery of oil from the Clear Creek Area of the Company's Missouri leases. Successful application of this technology will add significant resources and reserves to the Company on these leases which are currently not accessible using steam drive technology.
EEOR involves passing direct current electricity between electrodes in producing wells and electrodes either located at surface or in the oil zone in adjacent wells. Previous laboratory and field tests appear to demonstrate that the resulting electrical field has three operating mechanisms: i) Resistance or joule heating (formations have been heated to several hundred degrees Fahrenheit); ii) Electro-kinetic effect (enhanced pressure gradient toward the producing well); and, iii) Electro-chemical effect (large molecules are degraded to smaller molecules by way of oxidation and reduction reactions resulting in a crude oil having higher gravity and lower viscosity).
MegaWest and EPI will jointly undertake the review and design of a demonstration project for the EEOR process. Favorable results from the feasibility study could lead to the commencement of demonstration project construction during the fourth quarter of 2009 with operations to follow immediately. The cost of the demonstration project will be borne by EPI, with support in kind from MegaWest. Successful results from the demonstration project would lead to the design and implementation of a commercial scale project on leases held by MegaWest. EPI would earn a working interest on all acreage developed using the EEOR technology. MegaWest's Clear Creek leases cover nearly 19,000 acres in an area suitable for the application of this process. This agreement marks a significant milestone in the Company's efforts to identify, test and apply new technologies to the economic exploitation of untapped heavy oil resources.
The Clear Creek Area leases are separate from, and in addition to, about 15,000 acres in the Company's Deerfield Area of Missouri and Kansas, which have been assigned reserves and resources based on the two steam drive projects implemented by MegaWest (see Press Release dated July 15, 2009). The Company is pursuing options to restart these steam projects in light of the current favorable oil and natural gas prices.
R. William Thornton, President & CEO
Forward-Looking Statements
This press release contains forward-looking information and statements including opinions, assumptions, estimates and expectations of future employee retention. Forward-looking statements include information that does not relate strictly to historical or current facts. When used in this document, the words "anticipate", "believe", estimate", "expect", "forecast", "intent", "may", "project", "plan", "potential", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to a wide range of known and unknown risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. The risks and uncertainties that could affect future events or the Company's future financial performance are more fully described in the Company's quarterly reports (on Form 6-K filed in the US and the financial statements and Form 51-102F1 filed in Canada), the Company's annual reports (on Form 20-F filed in the US and the financial statements and Form 51-102F1 filed in Canada) and the other recent filings in the US and Canada. These filings are available at www.sec.gov in the US and www.sedar.com in Canada. For all such forward-looking statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Cusip: #585168 107
Contacts:
MegaWest Energy Corp.
George T. Stapleton, II
Chairman of the Board
403.984.6342
MegaWest Energy Corp.
R. William (Bill) Thornton
President and CEO
403.984.6342
investor.relations@megawestenergy.com
www.megawestenergy.com
http://www.streetinsider.com/Press+Releases/MegaWest+Signs+Advanced+Technology+Agreement+With+EPI/4798558.html
July 15, 2009 5:21 PM EDT
CALGARY, ALBERTA -- (MARKET WIRE) -- 07/15/09 -- MegaWest Energy Corp. (the "Company" or "MegaWest") (OTCBB: MGWSF), an independent oil and gas company specializing in non-conventional oil and gas projects with a focus on North American heavy oil, is pleased to announce that GLJ Petroleum Consultants ("GLJ"), an independent petroleum consulting firm, has confirmed and updated prior estimates of volumes and has completed a net present value (NPV) cash flow evaluation report of reserves and contingent resources for the core assets held in Missouri, Kansas and Kentucky. The GLJ report was prepared as of June 05, 2009 with an effective date of April 30, 2009 pursuant to National Instrument 51-101 "Standards of Disclosure for Oil and Gas Activities" of the Canadian Securities Administrators. The Company's filings under NI 51-101 can be found at www.sedar.com.
Summary
These results confirm the success of the Company in acquiring and delineating significant heavy oil deposits and support the business plan of the Company. The valuations indicate current and future upside to our shareholders when compared to current market capitalization. MegaWest will continue to pursue recognition of this value through prudent management of the business and effective execution of activities in the field, commencing with restart of operations at the Marmaton River and Grassy Creek projects pending successful recapitalization of the Company and continued expectations for high oil prices and low gas prices (used for fuel).
Reserves and Resource Valuation
GLJ has assigned a net present value (discounted at 8% per annum) of $14.91 million to total Proved plus Probable plus Possible Reserves ("PPP"). In addition to this, GLJ has assigned a net present value of $236.65 million to the Best Estimate (P50) Contingent Resource. As is typical, economic valuation of Prospective Resources was not completed.
Reserves valuation was conducted for the three reserves categories of Total Proved, Total Proved plus Probable and Total Proved plus Probable plus Possible, as well as for Best and High Estimates of Contingent Resources. The GLJ valuation is based on preliminary cost and timing estimates provided to GLJ by MegaWest. NPV cash flows were generated using the April, 2009 GLJ price forecast. The WTI price was discounted by 20% to obtain the estimated field-gate oil price.
http://www.streetinsider.com/Press+Releases/MegaWest+Energy+Announces+Third+Party+Valuation+of+Reserves+and+Contingent+Resources/4797257.html
Gonna add some more shares here at these low levels.
I thought I would respond, seeing you are all alone here.
I've been watching for some time when it was bouncing around .50 Glad I've waited some!
I will continue to watch and wait for before I jump in. Although at this price you can't go wrong.
Have a great day,
gunadoit
hmm. looks like a reversal might happen here if we can get some volume in it...
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Megawest Energy Corp.
750 West Pender Street
#604
Vancouver, BC V6C 2T7
Canada
Phone: (604) 689-0188
http://finance.yahoo.com/news/MegaWest-Energy-Announces-prnews-518362889.html?x=0&.v=18
Press Release Source: MegaWest Energy Corp. On Friday June 17, 2011, 4:31 pm EDT
CALGARY, June 17, 2011 /PRNewswire/ - MegaWest Energy Corp., (the "Company" or "MegaWest"), (OTCBB:MGWSF.ob - News) announces that effective June 20, 2011, the common shares of the Company will start
trading as Gravis Oil Corporation. In conjunction with the name change, the shares of the Com
pany have been consolidated on a one for ten (1:10) basis. The name change and share consolidation were approved by shareholders at the Company's annual general meeting on April 29, 2011.
The new trading symbol for Gravis Oil Corporation will be OTCBB:GRAVD, the "D" designation indicates the share rollback and this symbol will be in effect for 20 trading days. On July 19, 2011 the trading symbol for Gravis Oil Corporation will be changed to OTCBB:GRAVF, the "F" designation indicates a foreign listing.
Computershare, the Company's transfer agent will advise shareholders as to how to exchange their old share certificates for new share certificates.
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