Tenth Avenue Petroleum to Acquire Gas Assets and Launch $1.7 Million Financing

Tenth Avenue Petroleum Corp. (TPC) has signed a non-binding Letter of Intent to acquire approximately 82 boe/d of natural gas assets in Alberta. The acquisition, from an arm's length party, aims to boost production by 88% without increasing administrative costs due to economies of scale.

Concurrently, TPC announced a non-brokered private placement of up to 17 million units at $0.10 per unit, expected to raise up to $1.7 million. Proceeds will partially fund the acquisition, enhance infrastructure at Murray Lake, and support general working capital needs.

The new assets, characterized by low decline production and long-life reserves, expand TPC's operations in Southern Alberta. The acquisition is expected to immediately boost production per share by 64% and provide further development opportunities.

The offering is expected to close by October 25, 2024, with the acquisition closing anticipated by October 31, 2024.