BANGKOK, Thailand / ACCESSWIRE / July 2, 2014 / Oil Optimization Inc. (TSXV-OOI) (the "Company") announced today that further to the news release dated May 1, 2014 announcing the execution of a non-binding letter of intent dated April 30, 2014 (the "LOI"), the parties thereto have agreed to extend the date by which definitive agreements are to be negotiated to September 30, 2014. The Company entered into the arms-length LOI with a strategic investor, with exploration and production experience, that proposes to acquire an indirect 43% interest in the Company's onshore petroleum concession in Thailand by subscribing for shares to be issued by Red Stag Resources (BVI) Limited, a 100%-owned subsidiary of the Company, for a subscription price of US$ 2,340,000.
The proceeds would be used to drill, complete and test two wells on targets already identified on the Company's petroleum concession and to acquire additional seismic data, if necessary. The proceeds would cover the Company's entire share of the expected costs of such a drilling program and a portion of the seismic data expense. The proposed transaction is subject to, among other things, the execution of definitive agreements and the approval of the TSX Venture Exchange. The parties expect definitive agreements to be negotiated by September 30, 2014.
About Oil Optimization Inc.
Oil Optimization Inc. is an international junior oil and gas exploration company based in Canada with an advanced discovery program onshore Thailand. The Corporation owns the long-term exclusive rights to onshore Block L14-50, which is subject to a 22% farm-out agreement. The one million acre petroleum concession covers the entire northern section of the hydrocarbon-rich Phetchabun basin in central Thailand, which has been subject to a 200-line kilometer 2D seismic data acquisition program and an extensive magnetic survey. The southern section of the basin is currently being developed by China's ECO Orient Energy Ltd (60%) (a wholly-owned subsidiary of the Hong Kong and China Gas Company Limited), Australia's Carnarvon Petroleum Limited (20%) and by Loyz Energy Limited (20%) of Singapore.
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected activities of Oil Optimization. The forward-looking statements and information are based on certain key expectations and assumptions made by Oil Optimization. Although Oil Optimization believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Oil Optimization can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Oil Optimization undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
President & CEO
SOURCE: Oil Optimization Inc.