September 30, 2021 - TheNewswire - Calgary, Alberta - Paleo Resources, Inc. (“Paleo” or the “Corporation”) (TSXV:PRE) (OTC:PRIEF) announces that it received an order from the Alberta Securities Commission dated July 5, 2021 granting the full revocation of the cease trade order previously issued on May 6, 2021. Upon the issuance of the cease trade order, the common shares of Paleo were suspended from trading on the TSX Venture Exchange (“TSXV”). The common shares will reinstate trading on the TSXV at the opening of trading on Monday, October 4, 2021.

 

Paleo’s primary focus remains development of its oil and gas assets. Due to the continuing difficulties associated with raising financing for these projects, Paleo has continued to build out its digital finance unit, EF Resources, which provides the platform to access retail capital markets more efficiently, and without the significant dilution that accompany common share offerings.

 

In connection with the reinstatement of trading, Paleo provides the following operational updates:

 

Paleo Resources Oil & Gas Update

 

Paleo has secured approval from the Alberta Energy Regulator to install and operate production facilities necessary to produce its Joffre Leduc D-3B Pool 103/9-22-39-26 well. Paleo has installed the equipment necessary to commence curtailed production of the well and actually commenced production this month. The well is naturally flowing at a rate of 45-60 bbls fluid per day, with an 85%-88% oil cut. Paleo plans to install the remainder of the necessary equipment, including permanent flare facilities, before year end, that may allow the well and one or more additional field wells to be produced at a higher rate.

 

With respect to Paleo’s Polk County, Texas natural gas properties, Paleo is pleased to report that its Ranger A #1 well continues to produce commercially.  Paleo’s Jones #1 and Stampede A #1 wells are still waiting on a gas pipeline connection to an Energy Transfer pipeline. However, the gathering lines from the wells to the proposed pipeline connection are over 90% complete.

  

EnergyFunders Update

 

Paleo is pleased to report that its indirect US subsidiary, EnergyFunders LLC, has launched EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC. Both of these special purpose investment vehicles seek to manage accredited investor capital in oil and gas project investments managed by the EnergyFunders management team though a wholly owned limited liability company manager entity. EnergyFunders LLC does not own an equity interest in the Funds but will earn a fund origination fee that varies between one percent (1%) and five percent (5%) of the investment amount, and an annual fee of two percent (2%) of the assets under management (AUM) in connection with these offerings.

 

EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC is expected to  provide capital to or invest in one or more Paleo oil and gas projects, but no definitive terms of such participation have been reached at this time. In additional to traditional oil and gas well drilling projects, EnergyFunders is also assessing multiple projects that involve using stranded natural gas to power electricity generation for use in remote wellsite bitcoin mining.

 

EnergyFunders Yield Fund I, LLC is targeting a US$25 million capital raise and EnergyFunders Yield Fund I GP, LLC is targeting a US$10 million capital raise. Both entities commenced their capital campaigns in summer 2021, and continue to accept investor capital at this time. For more information on the structure and status of EnergyFunders LLC, its management team, and EnergyFunders Yield Fund I, LLC and EnergyFunders Yield Fund I GP, LLC, please review:

        EnergyFunders LLC Management Team

https://www.energyfunders.com/ourstory#our-team

 

EnergyFunders LLC Digital Platform Home Page

https://www.energyfunders.com

 

tZERO Partners With EnergyFunders to Digitize & Trade $25 Million of Securities in Its New Yield Fund I

https://www.businesswire.com/news/home/20210520005286/en/tZERO-Partners-With-EnergyFunders-to-Digitize-Trade-25-Million-of-Securities-in-Its-New-Yield-Fund-I

The Field Genie, Inc. Collaboration with EnergyFunders

 

Paleo is pleased to report that per the terms of the previously announced Field Genie transaction, Piyush Prakash continues to serve as CTO for Paleo. Field Genie has and continues to innovate around the EnergyFunders financial technology platform as it makes improvements and updates to the platform. Field Genie continues to strategically innovate and develop software centered around businesses in the retail and transportation sectors as it looks to expand its equity interests in other businesses. Field Genie is an innovation driven technology incubator, with deep experience in AI, IoT, Blockchain and Web 3.0 application development.  

 

The Corporation has paid seven (7) of the twelve (12) installment payments to date, totaling US $291,666.69 to Field Genie, and the Corporation remains in good standing under the Field Genie contract.

 

Upon making each of the twelve (12) installment payments, the Corporation earns and receives a proportionate share of 50,000 common shares of Field Genie, Inc., which is 4,166.67 shares per installment.  Accordingly, the Corporation has now earned 7/12 of 50,000 common shares of Field Genie (50,000 shares representing 5% of Field Genie, Inc.), or approximately 29,167 common shares to date.

   

Update as to Shares for Debt Transaction

 

As announced on April 8, 2021, the holders of the Corporation’s outstanding 2019 debentures provided notice to the Corporation to repurchase all amounts outstanding under the 2019 debentures in the principal amount of CDN$3,085,218.75. Paleo intends to settle a total of CDN$2,675,169.10 of such indebtedness through the issuance of an aggregate of 89,172,303 common shares of the Corporation at a deemed price of CDN$0.03 per share, subject to the approval of the TSXV. No new insider or control person will be created as a result of the shares for debt transaction.  Closing of the shares for debt transaction was delayed due to the cease trade order. Paleo expects to complete the transaction within fifteen (15) business days of reinstatement of trading.

 

Paleo Adds 6th Board Member

 

At Paleo’s 2021 annual general and special shareholders meeting held on July 9, 2021, the shareholders re-elected the current five directors and also elected Mr. Navneet (Nav) Behl to the Board of Directors of Paleo. Mr. Behl has over 27 years of experience in the petroleum industry. He was a key member of EOG’s unconventional Barnett Shale team, which developed modern shale completion techniques that ultimately kicked off the U.S. shale revolution.

After successfully leading the startup of 3 unconventional plays, Nav then started up his own exploration and production company – OilRox Resources, in 2019. Nav holds a B.S. from the Indian School of Mines in Petroleum Engineering, an M.S. from the University of Texas at Austin in Petroleum Engineering, and an executive MBA from the MIT Sloan School of Business.

  

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Paleo Resources, Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in San Antonio, Texas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "PRE" and on the OTCQB as "PRIEF".  

 

For further information please contact:

 

Roger S. Braugh, Jr.
Interim Chief Executive Officer and Chairman of the Board
Email: rbraugh@paleooil.com

 

Paleo Resources, Inc.

716 S. Frio St., Suite 201

San Antonio, Texas 78207

Telephone: 254-699-0975

 

Forward Looking Statements

 

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this news release contains forward-looking information regarding the debt settlement, and the business of Paleo. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects Paleo's current beliefs and is based on information currently available to Paleo and on assumptions Paleo believes are reasonable. These assumptions include, but are not limited to: the underlying value of Paleo’s common shares, TSXV approvals of proposed transactions, Paleo's current and initial understanding and analysis of its projects ‎and the exploration required for such projects; the ‎costs of Paleo's projects; Paleo's general ‎and administrative costs remaining constant; and the ‎market acceptance of Paleo's business strategy‎.

 

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Paleo to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: volatility in market prices for oil and natural gas; constraints on sour gas production; the availability of commodity markets and third party equipment, infrastructure and services; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; geological, technical, drilling and processing availability, upsets or problems; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Paleo; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Paleo's disclosure documents on the SEDAR website at www.sedar.com. Although Paleo has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Paleo as of the date of this news release and, accordingly, is subject to change after such date. However, Paleo expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.