Blue Sky Enters into an Agreement for Purchase and Sale for the Purchase of Oil and Gas Assets in BC and Alberta and Sale Of Indonesian and Belize Assets
(TheNewswire)
Calgary, Alberta, July 2, 2025 –TheNewswire - Further to the press releases issued on June 18 and May 13,2025, Blue Sky Global Energy Corp. (“BGE” or the“Company”)(TSXV: BGE) is pleased toannounce it has signed an Agreement for Purchaseand Sale for the acquisition of oil and gas assets in BC and Albertawith Blue Sky Resources Ltd. (“BSR”), who is a non-arm’s length party tothe Company and an Agreement for Purchase and Sale for the sale of itsBelize and Indonesian Assets to Kinara Resources Ltd. (“KRL”), who is anarm’s length party to the Company.
British Columbia and AlbertaAssets
BGE has entered into an Agreement for Purchase and Sale(the “PSA”), dated June 26, 2025, for the followingtransactions:
a) the acquisition of theremaining 50% working interest in certain oil and gas assets locatedin Northeastern British Columbia (“BC Assets”), sameas previously disclosed in the press release issued on May 13,2025;
b) the acquisition of thefollowing oil and gas properties in the Province of Alberta(collectively referred to at the “AB Assets”):
i. the acquisition of 100%working interest in the Taber Properties (“Taber”) locatednear the town of Taber – 51 active wells producing approximately 140bopd of light oil;
ii. 100% working interest in theColumbia Properties (“Columbia”) which are located east ofEdmonton – 43 active wells producing approximately 3 mmcfd plus 80bopd of liquids; and
iii. the acquisition of theremaining 50% working interest in certain heavy oil and gas assetslocated in the Cold Lake area (“Heavy Oil Assets”)made up of approximately 384 hectares (representing 100% interest)prospective for the exploration of heavy oil. BGE announced thepurchase of the first 50% interest in a press release dated August 6,2024.
Acquisition of the Utikuma Assets, located in Alberta,will no longer be part of the purchase transaction and are notincluded in the PSA.
As a result of the removal of the Utikuma from theassets being purchased, the total purchase price of the acquisitionhas decreased from CAD $23,000,000 to CAD $21,000,000 (the“Purchase Price”), and as announced previously, the purchase price will bepaid in cash at closing to BSR, subject to the completion of financingand other customary conditions.
BGE expects to complete a debt financing in order tofulfill payment of the Purchase Price. Further details of this debtfinancing will be disclosed in a subsequent new release once detailsof the financing are finalized. Should BGE be unable to obtainfunding for the purchase of the acquisition, BSR shall then provide aVendor Take Back Loan at Closing. The Loan shall be for a 2-yearterm with 10% interest payable per annum. The Purchase Price wasnegotiated between the directors of BGE and BSR and is based off anindependent reserves report. The reserves report for the BC assetsis for the year ending December 31, 2024 and is available on SEDAR+. The reserves reports for the Alberta assets, for the year endedDecember 31, 2023, are not available on SEDAR+.
Belize and Indonesian Assets
The Company has entered into an Agreement for Purchaseand Sale (the “PSA”), dated June 26, 2025, for the sale ofits Belize and Indonesian assets. The arm’s length party willacquire from BGE its wholly owned subsidiariesas follows:
a) Fire Creek (Barbados) Ltd.,which through its wholly owned subsidiary FCRL Belize Ltd. holds theProduction Sharing Agreement issued by the Government of Belize onJanuary 28, 2020; and
b) Blue Sky Paus Ltd. which holdsthe Production Sharing Contract issued by the Government of Indonesiaon February 27, 2023.
The Purchaser will pay BGE CAD$500,000 cash within 90 days after the Closing Date and shall sign aPromissory Note to reflect the amount owed to the Company. Inaddition, the Company shall retain a 3% Gross Over Riding Royalty onthe Belize and Indonesia assets. The Royalty interest shall bedocumented by the Company’s lawyer and signed by both parties on theClosing date.
Terms and Conditions
The Acquisition is subject to shareholder approval(s)as required, standard due diligence procedures, as well as customaryrepresentations, warranties, and closing conditions. The transactionremains subject to the approval of the TSX Venture Exchange (the“TSXV”) and the successful completion of financing byBGE.
BSR is controlled by the Chaudhary Trust datedSeptember 5, 2013, a Control Person and Insider of BGE and thus BSR isa "related party" to the Company. The Acquisition isexpected to be subject to Multilateral Instrument 61-101 -Protection of MinoritySecurity Holders in Special Transactions("MI 61-101") and BSR is considered a "Non-Arm's LengthParty" pursuant to the policies of theTSXV. As a result, closing of the Acquisition is subject to, among other things: (i) absent exemptions, formalvaluation and minority shareholder approval pursuant to MI 61-101;and (ii) the approval of the TSXV.
Trading in the common shares of the Company has beenhalted, and will remain halted, pending review and approval of theAcquisition by the TSXV.
No finder’s fees are to be paid in connection withthe Acquisition.
About Blue Sky Global Energy Corp.
The
Company is a publicly traded entity listed on the TSXV under the
symbol “BGE” with oil and assets in Canada, Indonesia and Belize.
BGE holds a 50% non-operated interest in producing assets in
Northeastern British Columbia. The Company holds a Production Sharing
Contract over the Paus Block with an area of approximately 8,214
square kilometers located offshore East Natuna, Indonesia. In Belize
the Company has a Production Sharing Agreement with the Government of
Belize comprised of approximately 180,000 acres of land in the Corozal
Basin which may hold prospective oil and gas resources, and which so
far includes on discovery, the SBC field.
For Further Information
Blue Sky Global Energy Corp.
Mohammad Fazil
President, Chief Executive
Officer, Corporate Secretary and Director
Email: mofazil@gmail.com
Phone Number: +1 (403) 613-7310
Cautionary Note Regarding Forward-Looking Statements
This press release contains
statements that constitute “forward-looking statements”. Such
forward looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual
results, performance or achievements, or
developments to differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking
statements.
Although the Company believes, in
light of the experience of its officers and directors, current
conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in
this forward-looking information are reasonable, undue reliance should not be placed on them because the
Company can give no assurance that they will prove to be correct. When
used in this press release, the words “estimate”, “project”,
“belief”, “anticipate”, “intend”, “expect”,
“plan”, “predict”, “may” or “should” and the negative
of these words or such variations thereon or comparable terminology
are intended to identify forward-looking statements and information.
The forward-looking statements and information in this press release
include: information relating to the Acquisition; and the exploration and development of the company’s
assets. Such statements and
information reflect the current view of the Company. By their nature,
forward- looking statements involve known and unknown risks,
uncertainties and other
factors that may cause the actual results and future events to differ materially
from those expressed or implied by such
forward-looking statements.
The forward-looking statements contained in this news release represent the expectations of
the Company as of the date of this
news release and, accordingly, are subject to change after such
date. Readers should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. The Company undertakes
no obligation to update these forward-looking statements
in the event that management’s beliefs, estimates or opinions, or other factors, should
change.
THE TSXV HAS IN NO WAY PASSED UPON THE MERITS OF THE ACQUISITION AND HAS NEITHER APPROVED NOR
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