Pétrolia to complete a business combination with Pieridae Energy Limited
Tuesday, May 16, 2017
Pétrolia Inc. PEA-TSVX (“Pétrolia” or the “Company”) announces that it has entered into a definitive agreement dated May 15, 2017 (the “Arrangement Agreement“) with Pieridae Energy Limited (“Pieridae“), a private Canadian corporation, providing for a business combination by way of plan of arrangement (the “Arrangement”) in accordance with Section 192 of the Canada Business Corporations Act (the “CBCA“), pursuant to which Pétrolia and Pieridae will amalgamate to form a new entity to be named “Pieridae Energy Limited” (“Amalco“). The completion of the Arrangement will result in a reverse takeover of the Company as defined in the policies of the TSX Venture Exchange (the “Exchange”). Completion of the Arrangement is subject to, among other things, the approval of the Exchange and shareholder approval from Pétrolia and Pieridae shareholders.

This Arrangement will enable Amalco to strategically position itself in the North American equity markets as a developing fully integrated energy company, from upstream production to the sale of liquefied natural gas (“LNG”). Pieridea’s Goldboro LNG facility project (the “Goldboro LNG Project”), combined with the resource potential held by Pétrolia, constitutes an opportunity for investors to participate in the evolution and growth of Canada’s only integrated LNG facility holding key permits and approvals for its current stage of development. It is expected that the combined expertise and diversification of the two companies will provide Amalco with the potential of an effective and sustainable long term growth plan.

The Arrangement will also allow Pétrolia shareholders an opportunity to participate in the LNG industry through the development of an integrated energy company and provide the means for an accelerated exploration of Pétrolia’s properties while offering a long-term market for any gas production. Pétrolia’s shareholders will receive an immediate premium and considerable potential upside when correlated against similar corporate situations in the North America equity markets this past year.

Amalco will maintain offices in Calgary, Québec City and Halifax.

The Boards of Directors of each of Pieridae and Pétrolia have unanimously approved the Arrangement and determined that it is in the best interests of their respective shareholders.

Laurentian Bank Securities Inc. (“Laurentian Bank Securities”) is acting as exclusive financial advisor to Pieridae with respect to the Arrangement.

About Pieridae

Pieridae is a privately held Canadian corporation based in Calgary, Alberta. Focused on the development of the Goldboro LNG Project, Pieridae has embarked on a strategy to consolidate natural gas reserves in key natural gas basins to develop new international markets for Canadian and US natural gas. With its first acquisition of resources in New Brunswick, to this merger with Pétrolia, Pieridae seeks to build a long term portfolio of natural gas to supply the Goldboro LNG Project. Pieridae is on the leading edge of the re-integration of the LNG value chain in North America. The development of its own natural gas potential allows for a comprehensive risk management strategy. Pieridae is targeting the next wave of world-wide LNG production, post 2020, and has sold 50% of the initial capacity of the Goldboro LNG Project pursuant to a 20-year, take-or-pay contract with Uniper Global Commodities SE, a 100% subsidiary of Uniper SE, one of Europe’s most important gas companies. Pieridae forecasts continuing significant growth in international and domestic markets for liquefied natural gas as consumers look to replace oil with cleaner burning natural gas in the electricity and transportation sectors.

For more information, please visit: http://pieridaeenergy.com
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