VANCOUVER, British Columbia, Oct. 08, 2019 (GLOBE NEWSWIRE) -- Fortem Resources Inc.(TSXV: FTM; OTCQB: FTMR)(the “Company” or “Fortem”) writes to provide its shareholders with the following corporate update.
On July 16, 2019, the Alberta Securities Commission (the “Commission”) issued a failure-to-file cease trade order (“FFCTO”) against the Company in connection with the delay in filing its audited annual financial statements for the year ended February 28, 2019, the related management’s discussion and analysis and certificates of its CEO and CFO (collectively, the “Annual Filings”) with Canadian securities regulators beyond the June 2018 and also beyond the extension deadline of July 14, 2019 granted pursuant to the management cease trade order issued by the Commission on July 4, 2019. As a result of the FFCTO, on July 17, 2019 the TSX Venture Exchange (the “Exchange”) suspended trading of the Company’s securities on the Exchange.
The Company continues to work diligently with its legal counsel, accountants and auditor to complete and file the Annual Filings. The Company intends to apply for a revocation of the FFCTO and, following receipt of such revocation, intends to apply to resume the trading of its common shares on the Exchange.
As previously announced by news release dated September 23, 2019, the Company continues to progress towards the finalization of a definitive agreement (the “Definitive Agreement”), pursuant to which the Company intends to farm-out a portion of its working interest in the Cisco Dome field located in Grand County, Utah (the “Property”), held through its wholly-owned subsidiary Rolling Rock Resources, LLC (“Rolling Rock”) and to establish a joint venture thereunder (the “Joint Venture”). Upon the entry into of the Definitive Agreement, the parties intend to quickly commence re-entering and testing of the behind pipe potential of up to 30 wells located on the Property. The parties also intend to explore other economic opportunities within the Company’s portfolio of assets to enhance its resource value and cash-flow position. No securities of the Company will be issued in connection with the Definitive Agreement or pursuant to the Joint Venture thereunder.
The Company’s wholly-owned subsidiaries, Rolling Rock and Black Dragon Energy, LLC (“Black Dragon”), are currently in negotiations to acquire the remaining 25% working interests of their respective Utah properties from each of Rockies Standards Oil Company, LLC and WEM Dragon, LLC, along with eliminating certain cash and well drilling obligations pursuant to the agreements thereunder (collectively, the “Working Interest Acquisitions”). If the parties come to terms regarding the Working Interest Acquisitions, this will allow each of Rolling Rock and Black Dragon to inject capital directly into its assets and benefit from 100% of their net cashflow. The Company intends to keep shareholders informed as things progress into material agreements.
About Fortem Resources
Fortem Resources Inc. is a Nevada oil and gas corporation, which holds properties in Alberta and Utah. The Company is engaged in the exploration, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and Utah in the United States. The Company is seeking North American and International expansion through an acquisition strategy.
For further information about Fortem, please visit the company website at www.fortemresources.com or email firstname.lastname@example.org.
On behalf of the Board of Directors,
FORTEM RESOURCES INC.
Chief Operating Officer
Tel: (403) 241-8912
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements in this news release include, but are not limited to, statements regarding: (i) the revocation of the FFCTO; (ii) the resumption of trading of the Company’s common shares on the Exchange; (iii) the Definitive Agreement; (iv) the exploration of other economic opportunities between the parties of the Definitive Agreement; and (v) the Working Interest Acquisitions. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: (i) the Company’s inability to file the Annual Filings; (ii) the Company’s inability to revoke the FFCTO and resume trading on the Exchange; (iii) the Company’s inability to sign the Definitive Agreement; (iv) the Company’s inability to successfully negotiate and close the Working Interest Acquisitions; and (v) general market conditions. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Forward looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publically any forward looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on SEDAR, available at www.sedar.com.