Cheetah Oil & Gas Ltd. has completed an equity financing and debt settlement that will support ongoing operations.
Pursuant to the equity financing, the Company issued 1,500,000 units (each, a “Unit”) at a price of $0.05 per Unit for gross proceeds of $75,000. Each Unit consists of one common share and one warrant. Each warrant entitles the holder thereof to acquire one common share at a price of $0.20 per common share for a period of two years. The Company issued 90,000 shares to a finder in connection in with the equity financing.
The Company also issued 1,180,000 shares at a deemed price of $0.05 per share to settle outstanding debt, interest and expenses in the aggregate amount of $59,000.
After issuing 2,770,000 new shares to complete the recent financing and debt settlement, Cheetah will have 10,728,625 shares issued and outstanding.
The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
The Company’s existing wells continue to produce oil at the proven oil field, Belmont Lake. Using gas-lift technology, the field has produced consistently. Belmont Lake is located in a flood plain of the Mississippi River and is subjected to seasonal flooding generally between January and May in most years. Our utilization of a remote tank farm and gas compressor; injector and production pipelines; and the gas-pressurized oil lift system have enabled oil production even during those times when the Mississippi River is at flood stage.
The Company continues to wait for surface conditions to improve so the fully financed drilling program can take place this fall. With the closing of the recent financing and debt conversion the Company is in a position to look at potential acquisitions that may be immediately accretive to the company’s cash flow.