DENVER, Sept. 24, 2012 -- Grid Petroleum Corp. (OTCBB: GRPR): The Board of Directors is pleased to announce that Grid Petroleum has completed negotiations of an initial round of convertible preferred financing in the amount of $2,500,000.00 by a private Small Cap Venture Fund.
The Company is please to announce the terms of the financing are to provide the company with a commitment to fund up to $2,500,000.00 during the next 5 quarters of 2012. The financing will be available to the company in tranches of $500,000.00 based upon completion of certain milestones by the company concerning lease acquisition and field development.
The proceeds of the initial round of financing are to provide direct drilling and field development working capital and expenses.
The Company will receive the first tranche of funding under the terms of the agreement this next financial quarter.
The Company previously announced September 20, 2012.
Grid Petroleum Production Inc has entered into a Letter of Intent for the Leasing and Commercial Oil and Gas development of a significant prospect in the Northwest Premont area of Texas, not related to any Areas of Mutual Interest previously Identified by Progas Services Inc, the current Joint Venture Operator.
This prospect has identical Geology as the current Northwest Premont Field, with shut in production from both Oil and Gas, not currently being produced.
It is anticipated that the company will begin the process of developing this new prospect immediately. The prospect once developed has the potential to equal the estimated recoverable Oil reserves of the North West Premont Field the company is developing as a Joint Venture Partner.
"This Financing will allow the Company to continue to execute upon its business plan to explore and drill it's new and existing lease hold prospects," states company President James Powell, "The Company intents to begin the development of the new significant lease opportunity upon receiving the first tranche of funding."
The Company has calculated upon completion of development of the new prospect, the company will have estimated recoverable oil reserves in the range of 75,000 to 150,000 barrels of oil per well. The Company anticipates the ability to drill a minimum of 20 Oil wells.
The company is diligently pursuing the development and control of all of its future exploration and drilling business.
Grid Petroleum Corp. is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). They may not be offered or sold in the United States (as defined in Regulation S under the Securities Act), except pursuant to an exemption from the registration requirements of the Securities Act.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms such as estimates of a mean of undiscovered natural gas and estimates of a mean of undiscovered oil that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports filed by us from time to time with the SEC, available from us at www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
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SOURCE Grid Petroleum Corp.