NEWS RELEASE | Thursday, February 1st, 2018
February 1st, 2018 - Calgary, Alberta
Final Stages of Frac Fluid Recovery Still Underway
Period of Performance (Ending February 1st, 2018)
The Company’s and Vital Energy are still in the final stages of frac fluid recovery and stabilization of 101/14-15-18-17W3. Once a stabilized fluid rates are achieved, the operator and Cerus will provide a joint news release announcing production results. Cerus and Vital will perform a program and geological review to assess the mechanical efficiencies and performance vs. theoretical modeling.
The company remains positive in the results that have been observed to date.
Cerus funded the program through the Lomac Syndicate Program to a non-arm’s length financier. The financier will retain 160% of the total 180% Penalty Payout on the Pennant, Saskatchewan Play. The tailing 20% and 5% GORR with be retained by Cerus as an earned margin and retained royalty.
The objective of Cerus Energy Group (TSXV:CEA) is to build a premier energy portfolio of development interest through its proprietary CWI (Carried Working Interest) capitalization structure.
Strategy / Investment Process
Cerus uses a formal Development Finance Program (or DFP) structure to enhance the management and placement of investment capital. Our Finance Program is suitable for long and short-term capital projects with the capability of retained expansion through the provision of rolling development options. The DFP both uses and optimizes a series of revenue sharing mechanisms to recover investment capital and associated fees from inner corporate investments.
|New Wells Spudded||1|
|New Wells Completed||0|
|Wells in active paying out||0|
|Drill sites under obligation||6|
|Current drill commitment||CAD $8,400,000|
|Locations under option||103|
|MOODY's rating||No rating at this time|
|S&P Rating||No rating at this time|
*The performance highlighted is past performance and is not a guarantee of future results. Energy companies are subject to certain market risks and the information contained is believed to be accurate at the date of presentation. Investment performance and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. Further explanation: 1. Current Drill Commitments: Are the number of locations required to meet commitments outlined in active CWI agreements. 2. Locations Under Option: Identified locations that are in addition to the CWI primary commitment that the company has the option to develop post primary commitment completion. 3. CWI: is an Cerus developed Carried Working Interest for the purpose of oil and gas participation and funding. Additional information can be obtained from www.cerusenergy.com or call 1-877-837-8864.