VANCOUVER, British Columbia, Oct. 10, 2017 — Stamper Oil & Gas Corp. (TSX-V:STMP) (FSE:TMP2) (OTCQB:STMGF) (“Stamper” or the “Company”), is pleased to announce that it has entered into a Memorandum of Understanding (the “MOU”) with State Oil Corporation (“State”) to acquire 100% of the issued and outstanding shares of State. State is a closely held private corporation.
State has signed a Memorandum of Understanding with Sudapet Company Ltd. (“Sudapet”), the national oil company of Sudan, pursuant to which State will farm-in to acquire a 50% interest and rights in a certain Sudapet exploration and production project in Sudan.
The project area is comprised of 26,000 sq. km. The previous operator successfully drilled 3 discovery wells and 7 development wells. Over 6,700 km of 2D seismic and 432 sq. km of 3D seismic have been completed in the project area. The seismic data indicates a number of new locations for drilling. The export oil pipeline to Port Sudan runs through the project area.
A third party analysis report concludes: “based on the TOC/Rock Eval data at disposal, excellent oil prone lacustrine source rocks (Type I) were penetrated in the two discovery wells located in the Central Sub-basin. In the Eastern Sub-basin, a source rock was encountered near TD in the lower oil prone formation, Campanian in age.”
The MOU is non-binding. Completion of Stamper’s acquisition of State is subject to State signing final agreements with Sudapet and approval of the acquisition by the TSX Venture Exchange.
Prior to completion of the acquisition Stamper intends to raise capital through private placements (which will be detailed in separate news releases and will also be subject to approval by the TSX Venture Exchange). Stamper expects the work required in first 3 to 6 months post-acquisition to require expenditures between $50,000 and $100,000 for further study of seismic data and preparation of development plans for the project.
Terms of the MOU with State
- State will complete farm-in agreement with Sudapet. Successful completion of the farm-in will result in a production sharing agreement between State and Sudapet; and
- Stamper will issue 25,000,000 shares out of treasury in exchange for 100% of the shares of State (subject to approval by the TSX Venture Exchange); and
- Stamper will be responsible for carrying out its own due diligence and preparation of any reports required for completion of the contemplated transactions.
This transaction is non-arm’s length as Stamper and State have common directors. Further, the contemplated issuance of the Stamper shares to the shareholders of State will not result in a new control person of Stamper or in new shareholders of Stamper holding more than 50% of Stamper’s issued and outstanding securities.
State has provided all technical data received from Sudapet to Stamper and will work together with Stamper to ensure that a National Instrument 51-101-compliant report is prepared for regulatory approval.
David Greenway, President of Stamper, commented, “This is a momentous development partnership for both Stamper and State. We are very pleased to have signed the MOU which presents a significant opportunity to move forward on oil projects in Sudan. State has acquired extensive 2D and 3D seismic high-quality data that will allow for cost effective further exploration.”
About Stamper Oil & Gas
Stamper Oil & Gas Corp. is a publicly traded junior development stage international oil and gas company. The Company is engaged in the acquisition, exploration and evaluation of conventional and unconventional oil and natural gas properties with the current focus on Africa and Latin America. The Company’s strategy is centred on generating sustainable long term shareholder value by exploring and developing cost effective growth of light oil reserves.
For further information on Stamper Oil & Gas please visit www.stamperoilandgas.com.
The scientific and technical information contained in this news release has been reviewed and approved by Qamar M. Malik, MSc., Ph.D., Petroleum Engineering, who is a “Qualified Person” as such term is defined under National Instrument 51-101 (“NI 51-101”) and Canadian Oil and Gas Evaluation (“COGE”) Handbook.
ON BEHALF OF THE BOARD OF DIRECTORS
“David C. Greenway”
President & Director
For further information, please contact:
Stamper Investor Relations
Phone: (604) 684-2401
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.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Stamper Oil & Gas Corp. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Stamper Oil & Gas Corp. management on the date the statements are made. Except as required by law, Stamper Oil & Gas Corp undertakes no obligation to update these forward- looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.