Horizon Petroleum Ltd. (“Horizon” or the “Company”) (TSXV: HPL) is pleased to announce that it has entered into an arrangement agreement (the “Arrangement Agreement”) with privately-held, Calgary-based Iskander Energy Corporation (“IEC”), pursuant to which Horizon will, subject to certain conditions, acquire all of the issued and outstanding common shares of IEC (“IEC Shares”) in exchange for 55,373,072 pre-consolidated shares of Horizon at a deemed value of $0.05 per share (the “Transaction”) by way of a plan of arrangement (“Plan of Arrangement”) under the Business Corporations Act (Alberta) (“ABCA”).
To date the company has closed on $405,000 of the previously announced $600,000 financing. With the funds raised to date, Iskander has purchased an additional 40% working interest in our Georgian Satskhenisi permit, paid the first 6 months of the annual permit fees for our 2 permits in Bulgaria and is in the process of paying the Exploration Permit 5 year extension fee for one of our permits in Ukraine and have brought current certain expenses that were owing for operating costs in Georgia and general and administrative items.
Iskander Energy Corp. (the ”Company” or “Iskander”) has received a financing offer from a group of existing shareholders whose current collective ownership represents approximately 30% of the outstanding shares in Iskander. The offer is to provide up to CAD $600,000 of equity financing at a price of $0.000023/ common share. Under the proposal, other existing shareholders are being offered the opportunity to participate and protect their existing pro rata interest in the Company.
As reported earlier, we have completed major workovers (zonal isolation and hydraulic frac stimulation) on 2 wells in Georgia and minor workovers (re-perforation and new downhole pump installations) on 2 other wells.
