Wedgemount Announces Further Gains in Permian Basin Oil Production Update

Wedgemount Announces Further Gains in Permian Basin Oil Production Update

 

Vancouver, BC – February 22, 2023 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF) (“Wedgemount” or the “Company”), is pleased to announce additional updated production results from the Willowbend light oil project, located in the Permian Basin of Central Texas (the “Project” or “Willowbend”).

As of February 16, 2023, the five-day average Willowbend field production was 104 boepd, which represents a significant increase from the Q4 2022 average of 25 boepd. To date, three of eleven wells on the Project have undergone both well and formation chemical treatments with the balance anticipated to be treated prior to the end of March 2023.

“The initial production results from Willowbend continue to track above corporate expectations”, commented Mark Vanry, President and CEO of Wedgemount. “Our next three well and formation treatments are scheduled to start next week. The Company anticipates well workovers and surface optimizations will commence in April 2023, which Wedgemount is optimistic will continue to add incremental production to the field.”

All fieldwork continues to be under the direction of Wedgemount’s San Antonio based partner, Petrosaurus Inc.

 

About Wedgemount Resources Corp.

Wedgemount Resources is a junior natural resources company focused on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.

On behalf of the Board of Directors,

WEDGEMOUNT RESOURCES CORP.

Mark Vanry, President and CEO

For more information, please contact the Company at: Telephone: (604) 343-4743 info@wedgemountresources.com www.wedgemountresources.com

Reader Advisory

This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward looking statements made in this news release include the anticipated completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Project, and potential additional acquisition opportunities in the area of the Project. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs, successes of the Company’s exploration efforts, availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Wedgemount Makes Second Payment on Willowbend Property, Raises US$400,000 Through Loan From Director

Wedgemount Makes Second Payment on Willowbend Property, Raises US $400,000 Through Loan From Director

 

Vancouver, BC – February 21, 2023 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF) (“Wedgemount” or the “Company”), announces that it has completed the second of three payments in connection with the acquisition of certain West Texas, Permian Basin, oil and gas production assets (the “Project”) (announced October 27, 2022 and December 19, 2022). The Company has made payments totalling US$750,000 and has one final payment of US$750,000 due on or before March 31, 2023. Upon completion of the third payment, the Company will assume operatorship of and take title to the Project. Upon closing, the Company will acquire a 100% working interest in the leases comprising the project subject to underlying royalties averaging 19%.

In addition, the Company announces that it has entered into a loan agreement (the “Loan Agreement”) with Mark Vanry, the Chief Executive Office of the Company, under which Mr. Vanry has agreed to loan the Company US$400,000 (the “Loan”). The Loan will bear interest at a rate of fifteen percent (15%) per annum, payable by the Company to Mr. Vanry monthly on the last Business Day of every month, with the, for the first twenty-two (22) months from the date of initial advance with the first payment commencing on June 30, 2023, and thereafter at the rate of eighteen percent (18%) per annum. The Company will make payments on account of principal on the Loan commencing June 30, 2023 at the rate of US$20,000 per month plus an amount equal to 25% of net cash flows over US$200,000. The Loan will mature, and all outstanding principal shall be payable, on February 28, 2025. The Company may repay the Loan at any time on 10-days’ notice without penalty. The Company intends to repay the Loan with cash received from cash flows. The Loan is guaranteed by the Company’s wholly owned subsidiary, Wedgemount Texas Corp, and is secured by a pledge of the shares of Wedgemount Texas Corp. and a general security interest over the assets of Wedgemount Texas Corp. In addition, the Company has agreed to grant to Mr. Vanry warrants to purchase 275,000 common shares, exercisable for three years from the date of issue, at a price of $0.30 per share.

The Loan, including the issue of the warrants, constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61- 101”) as Mr. Vanry is a director and officer of the Company. The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(1)(a) of MI 61- 101, respectively, as the value of the Loan does not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101. The Loan Agreement was approved by the independent members of the Company’s board of directors.

About Wedgemount Resources Corp.

Wedgemount Resources is a junior natural resources company focused on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.

On behalf of the Board of Directors,

WEDGEMOUNT RESOURCES CORP.

Mark Vanry, President and CEO

For more information, please contact the Company at: Telephone: (604) 343-4743 info@wedgemountresources.com www.wedgemountresources.com

Reader Advisory

This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward looking statements made in this news release include the anticipated completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Project, and potential additional acquisition opportunities in the area of the Project. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs, successes of the Company’s exploration efforts, availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Wedgemount Announces Permian Basin Oil Production Update

Wedgemount Announces Permian Basin Oil Production Update

 

Vancouver, BC – February 14, 2023 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF) (“Wedgemount” or the “Company”), is pleased to announce initial well production results from the Willowbend light oil project in the Permian Basin of central Texas.

On January 23, 2023, three wells including the McBeth-2, McBeth-5 and Davis-3 underwent well and formation chemical treatments. Prior to the treatments, the three wells were flowing at a combined rate of 10 barrels of oil per day. Post treatment, the three wells combined have tripled in production and are currently flowing at a rate of 31 barrels of oil per day. Total cost of the three well chemical treatment program was US$45,000. Overall field production is now 52 barrels of oil per day, more than double the average for Q4 2022.

“We couldn’t be happier with the initial results from the Company’s field work to date,” commented Mark Vanry, President and CEO of Wedgemount. “Adding production at under US$2,200 per flowing barrel demonstrates a very low cost path to adding significant value at Willowbend. The Gardner Formation wells have responded to the chemical treatments beyond our expectations and without the benefit of workovers which will commence in late March 2023. We’re looking forward to treating and testing the balance of the 11 producing wells at Willowbend over the coming weeks.”

Field work was carried out by the Company’s San Antonio based operations contractor, Petrosaurus. The Company anticipates carrying out chemical treatments on three additional wells within the next two weeks and workovers on all of the Willowbend wells commencing in late March 2023. Wedgemount is optimistic that the well workovers will add incremental production to the field in addition to the increase from the previously mentioned well treatments.

Petrosaurus’ in-house developed chemical cleanouts combined with well workovers and new zone perforations are a key part of Wedgemounts’s initial plan to grow production from underexploited and underdeveloped light oil formations in central and south Texas.

Willowbend Transaction Update

Closing of the Willowbend transaction (the “Transaction”) is conditional upon the Company making total payments to the arm’s length vendors totaling US$1.5 million. To date, the Company has paid US$250,000 with additional payments of US$500,000 (on or before February 28, 2023) and US$750,000 (on or before March 31, 2023) scheduled to meet closing conditions of the Transaction.

On closing of the Transaction, the vendors will relinquish operator status and transfer title to the leases and ownership of related surface facilities and equipment (the “Project”) to the Company’s wholly owned Texas subsidiary, Wedgemount Texas Corp (“WTC”). Concurrent with closing, WTC will have earned a 100% working interest in the leases comprising the Project subject to underlying royalties averaging 20%. Conditional to closing, WTC will be credited by the vendors with an amount equal to the net oil and gas revenue from the Project for the period commencing January 1, 2023 and up to the date of closing of the Transaction (the “Interim Period”) which amount will be reconciled by vendor via a settlement statement rendered within 60-days of closing of the Transaction. During the Interim Period, the vendor will conduct operations at the direction of WTC. WTC is responsible for oil and gas production taxes as well as property taxes during the Interim Period.

 

About Wedgemount Resources Corp.

Wedgemount Resources is a junior natural resources company focused on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.

On behalf of the Board of Directors,

WEDGEMOUNT RESOURCES CORP.

Mark Vanry, President and CEO

For more information, please contact the Company at:

Telephone: (604) 343-4743

info@wedgemountresources.com www.wedgemountresources.com

Reader Advisory

This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward looking statements made in this news release include the anticipated completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Assets, potential additional acquisition opportunities in the area of the Assets and the proposed use of the proceeds of the Offering. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs, successes of the Company’s exploration efforts, availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws. Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Wedgemount Commences Initial Permian Basin Program

Wedgemount Commences Initial Permian Basin Program 

 

Vancouver, BC – February 2, 2023 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF) (“Wedgemount” or the “Company”), is pleased to announce that it has commenced its phase-one field program on its recently acquired Willowbend light oil project located in the Permian Basin of central Texas.

The initial program includes chemical clean-outs of both operating wells and the producing Gardner formation, optimization of surface facilities, and a study of historic bypassed pay zones. Chemical treatments on the initial three wells have been completed and production tests have commenced. The Company anticipates results of the well tests in approximately two weeks. The second phase of chemical treatments will take place in mid-February.

The chemicals used in the well and formation cleanouts are designed to break down naturally occurring paraffin and asphaltenes which reduce well and formation productivity. Operations are being carried out by Wedgemount’s partner, Petrosaurus who have an established track record of optimizing wells with chemical treatments in central and south Texas.

Mark Vanry, President and CEO of Wedgemount, stated “We’re delighted to commence the Company’s first ever field program in the Permian Basin. Chemical cleanouts followed by well workovers and new zone perforations are a key part of our initial plan to grow production from the underexploited and underdeveloped Gardner formation. Petrosaurus’ proprietary oil well chemical treatments are a key component of Wedgemount’s strategy of acquiring and optimizing under-performing conventional light oil assets in central Texas.”

About Wedgemount Resources Corp.

Wedgemount Resources is a junior natural resources company focused on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.

On behalf of the Board of Directors,

WEDGEMOUNT RESOURCES CORP.

Mark Vanry, President and CEO

For more information, please contact the Company at:

Telephone: (604) 343-4743

info@wedgemountresources.com www.wedgemountresources.com

Reader Advisory

This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward looking statements made in this news release include the anticipated completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Assets, potential additional acquisition opportunities in the area of the Assets and the proposed use of the proceeds of the Offering. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs, successes of the Company’s exploration efforts, availability of capital and financing and general economic, market or business conditions. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws. Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.