- Company Will Resume Drilling at Manuel Seep During Week of October 31
- Executes Convertible Note for Up to $1.5 Million in Proceeds
- Company Announces Termination of Existing Share Purchase Agreement
PHOENIX, AZ / ACCESSWIRE / October 28, 2022 / PetroSun, Inc. (OTC PINK:PSUD) (the "Company") announced today that it plans to commence drilling operations at its Manuel Seep field during the week of October 31. The Company has executed a drilling contract with Aztec Well Servicing Co. and plans to resume drilling operations at the Manuel Seep 2-1 Well (the "MS 2-1") in order to reach total depth. The well is prospective for helium.
Drilling operations on the MS 2-1 were previously suspended during COVID-related lockdowns. The resumption of operations will deepen the existing wellbore to its target depth, and the well will then be tested to determine the presence and size of any helium discovery.
Dr. R. Gerald Bailey, the Chief Executive Officer of PetroSun, stated, "We are excited to announce the resumption of drilling operations at Manuel Seep. Based on the Company's previous geological work, we consider the dome formation underlying the MS 2-1 to be highly prospective for helium. We also look forward to working with Aztec Well Servicing Co. on the project, since we have known the Aztec team for a number of years and we are very familiar with their reputation and track record."
The Company also announced today that it has executed a new convertible financing, which replaces the previously announced Share Purchase Agreement. Committed proceeds of the new financing, which total approximately $1.1 million, are designated to fund the drilling activity on the MS 2-1, in addition to certain general and administrative expenses. The new, prepayable, convertible loan replaces the Stock Purchase Agreement dated February 3, 2022, which was terminated concurrently with the execution of the new loan. The conversion price under the new convertible loan is $0.15 per share of the Company's common stock.
Dr. Bailey commented that, "We are pleased to announce this new convertible loan and another recent transaction that removed approximately $1.8 million in debt from the Company's balance sheet. The termination of the Share Purchase Agreement follows recent turbulence that we have seen across all equity markets since the SPA's execution in February. The current trading levels of equities have reduced the investment portfolios of every equity investor, including the portfolio of the counterparty to the SPA. As a result, we have terminated the SPA, and we thank our investor for its continued support. We are in discussions relating to a number of additional funding options. However, our near-term drilling program is fully funded."
ABOUT PETROSUN, INC.
PetroSun, Inc. owns significant leasehold acreage that is prospective in helium exploration and production in the Holbrook Basin of Arizona and prospective for natural gas and helium in the Paradox Basin of Utah. The Company holds mineral leases on over 282,000 gross acres in the Holbrook Basin and over 26,000 gross acres in the Paradox Basin. The Company trades on the OTC Pink Sheets under the symbol "PSUD".
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. In some cases, you can identify forward-looking statements by the following words: "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "ongoing", "plan", "potential", "predict", "project", "should", "will", "would", or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time the statements are made and involve known and unknown risks, uncertainty and other factors that may cause our results, levels of activity, performance or achievements to be materially different from the information expressed or implied by the forward-looking statements in this press release. This press release should be considered in light of all filings of the Company that are disclosed on the OTCMarket.com website.
Contact:
PetroSun, Inc.
2999 North 44th Street, Suite 620
Phoenix, Arizona 85018
480-425-4290
Website: www.petrosun.us
SOURCE: PetroSun, Inc.