VANCOUVER, British Columbia, June 05, 2025 (GLOBE NEWSWIRE) -- Pulse Oil Corp. (“Pulse” or the "Company”) (TSXV: PUL) is pleased to announce that Pulse has entered into two loan Facility Agreements (the “Facility Agreements”) with related parties to the Company (the “Lenders”), whereby the Lenders have agreed to loan to the Company (collectively, the “Loans”), in aggregate, the sum of $2,250,000 (the “Principal”).
Pursuant to the Facility Agreements, the Loans will be made available in tranches of $1,125,000 primarily to fund the Bigoray EOR project’s solvent injection program. The Facility Agreements provide that the principal bears interest at the rate of 15% per annum (the “Interest Rate”), compounded monthly, with fixed partial interest payments being made on a quarterly basis starting on September 30, 2025 in the amount of $10,000 with the remaining interest and Principal being repayable on the earlier of June 4, 2027.
In conjunction with the Facility Agreements, Pulse has entered into a general security agreement with the Lenders whereby Pulse grants, assigns, mortgages, pledges, charges, and grants a security interest to, and in favour of the Lenders in the undertaking of the Company and in all present and after acquired property of Pulse and its 100% owned subsidiary, Pulse Oil Operating Corp., until such time as all obligations owed to the Lenders have been satisfied.
In connection with the Loans, Pulse will pay an establishment fee to the Lenders in the amount of $112,500, being 5% of the amount of each Facility (collectively, the “Fee”), to be added to the Principal and bearing interest at the Interest Rate.
The Company intends to use the net proceeds of the Loan to purchase solvent for injection at Pulse’s 100% owned Bigoray enhanced oil recovery project (the “EOR Project”), with injection expected to start in Q2 of 2025.
The Loans constitute a “related party transaction” as that term is defined in Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions (“MI 61-101”). The Company is relying on an exemption from the minority approval requirement of MI 61-101 pursuant to section 5.7(1)(e) thereof on the basis that the Company is in serious financial difficulty and the Loans are intended to improve its financial position, and that, in addition to confirming the foregoing, the Company’s independent directors have determined that the terms of the Loans are reasonable in the circumstances of the Company.
It is likely that the Company will not file a material change report at least 21 days before the advance of the Principal under the Loan as it is necessary for the Company to receive the Principal as soon as practicable in order to advance the critical solvent injection phase of the Company’s Bigoray EOR project.
The payment of the Fee may be subject to the acceptance of the TSX Venture Exchange.
Pulse Oil Corp. CEO, Garth Johnson, commented, “This funding allows us to advance the critical solvent injection phase of our Bigoray EOR project. Currently, solvent prices are low, even when compared to just a few months ago and it’s good timing to be able to take advantages of these lower prices. Pulse’s team will work hard to acquire and inject as much solvent as possible when prices are low and we can slow down injection rates at times of higher prices to maximize the effectiveness of our cash and cash flow. The Nisku D and E Pools have already produced nine million barrels of sweet light crude oil on primary and water flood production. Analog pools surrounding Pulse’s D and E Pools which have implemented EOR solvent injection, have all enjoyed significant further oil production from these prolific pools. Our small-scale pilot project of solvent injection into the Bigoray D Pool provided us evidence that solvent sweep would advance rapidly through our pools. We are now excited about a strong 2025 fiscal year, this is the stage we’ve been waiting for.”
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In this news release, such statements include, but are not limited to, the anticipated receipt of the Principal and the intended use of such funds. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information.
This forward-looking information reflects Pulse’s current beliefs and is based on information currently available to Pulse and on assumptions Pulse believes are reasonable. These assumptions include, but are not limited to, access to market for the Company’s EOR Project solvent supply.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pulse to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, commodity prices, solvent injection supply, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; consistent production and cash flow from current operations, the actual results of future operations; changes in legislation, including environmental legislation, affecting Pulse; the timing and availability of external financing on acceptable terms; and loss of key individuals.
A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Pulse’s disclosure documents on its profile on the System for Electronic Document Analysis and Retrieval + (SEDAR+) at www.sedarplus.com. Although Pulse has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Pulse as of the date of this news release and, accordingly, is subject to change after such date. However, Pulse expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
About Pulse
Pulse is a Canadian company incorporated under the Business Corporations Act (Alberta) that is primarily focused on a 100% working interest in the EOR Project located in West Central Alberta, Canada. The project includes two established Nisku pinnacle reef reservoirs that have been producing sweet light crude oil for over 40 years.
The Company has instituted a proven recovery methodology (NGL solvent injection) to further enhance the ultimate oil recovery from these two proven pools. With under 10 million barrels of oil recovered to date, and representing approximately 30% recovery factor from the pools, Pulse is moving forward to execute the EOR Project and unlock significant value for shareholders. Pulse’s total reclamation liabilities are just $3.1 million which, when compared to many peers in the industry in Western Canada, are very low.
Neither the 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.
For further information contact:
Pulse Oil Corp.
Garth Johnson
CEO
604-306-4421
garth@pulseoilcorp.com
