Propell Announces Additional $9,750,000 Strategic Equity Investment by Ervington
Proceeds to Be Used to Acquire Oil Producing Assets
HOUSTON, TX -- (Marketwired) -- 07/08/15 -- Propell Technologies Group (OTCQB: PROP) (the "Company"), the U.S. provider of a plasma pulse based enhanced oil recovery technology, today announces it has received an additional investment of $9.75 million from Ervington Investments Limited.
On February 19, 2015, the Company raised $5,000,000 from the sale of 1,525,424 shares of its Series C Preferred Stock ("Series C Preferred") at a purchase price of $3.28 per share.
Ervington Investments also received an option to invest an additional $9,750,000 in consideration of the issuance of an additional 2,974,576 shares of Series C Preferred. On July 6, 2015, Ervington exercised its option and closed the second and final tranche of financing.
Capital from the transaction will be used by Propell to pursue a growth and value creation strategy of acquiring domestic active oil-producing assets for secondary oil recovery that are ideally positioned to benefit from Propell's patent-pending plasma pulse enhanced oil recovery technology. Propell expects to aggressively pursue the acquisition of oil properties.
Propell intends to apply its environmental friendly technology to fields the Company acquires and redevelops onshore in the U.S., and also provide its Plasma Pulse as a service to third party E&P companies.
Mr. Huemoeller, President and CEO of Propell, said, "This investment provides Propell with immediate access to the resources necessary to continue to execute on our growth strategy. These resources include the funds needed to acquire oil-producing assets that we expect will benefit from the implementation of our proprietary plasma pulse technology to increase the recovery of oil that has already been discovered in a typical reservoir that is unrecoverable using conventional technology. "
ABOUT PROPELL TECHNOLOGIES GROUP
Propell Technologies Group, Inc. (http://www.propell.com/), through its wholly owned subsidiary Novas Energy USA, is the exclusive U.S licensee of the Plasma Pulse enhanced oil recovery (EOR) well treatment that improves well production cost effectively and without acidization, hydrofracking or other chemicals. It develops and commercializes treatment and stimulation of oil wells to meaningfully improve production and enhance the recovery of oil and gas in existing wells.
This press release includes forward-looking statements of our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding future acquisitions, corporate growth strategy, future application of our technology, and results to be derived from the use of that technology. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in our forward-looking statements include, among others, our ability to find suitable acquisitions, fuel our growth and the other factors described in our on Form 10-K for the year ended December 31, 2014, and any other filings we may make with the SEC. The information in this press release is provided only as of the date written, and we undertake no obligation to update any forward-looking statements contained in this press release on account of new information, future events, or otherwise, except as required by law.
Propell Technologies Group
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Source: Propell Technologies Group, Inc.