Lotta Coal Announces Funding Extension
Lotta Coal, Inc. (PINKSHEETS: LCOL) today announced that on the basis that $2 million in interim funding is received before July 8, 2007, it has agreed with the Bahamas investment group to a thirty-day extension of the time for closing its previously announced funding for subsidiaries Peace West Energy Corp., Lesser Slave Lake Explorations Inc. and Great Bear Explorations Inc. The delay in closing is due primarily to certain structural and related changes implemented to facilitate the investment and future listing objectives of the Company.
About Lotta Coal
Lotta Coal, Inc. is a unique oil and gas company with three separate wholly owned operating subsidiaries, each with rights to explore and develop oil and gas resources in partnership with different First Nations commercial entities in Northern Alberta, Canada. The Company is publicly traded on the over-the-counter market under the Ticker symbol: LCOL.
The Company has been able to assemble over 100,000 acres of land, all with a 100% interest. It successfully drilled seven out of seven wells and re-entered a further successful well in the Boyer field, and is preparing engineering for tie-in to infrastructure and further drilling in the Boyer and Lesser Slave areas. Over $3,600,000 has been invested since September 2006 on drilling and acquisition activities, and pursuant to the contemplated financing agreement, the investor will invest up to a total of approximately USD $175 million in a newly organized subsidiary which holds the Company’s oil and gas properties, which are comprised of USD $8 million in initial funding and USD $167 million in warrants, of which USD $2 million is expected to be exercised at closing and the remaining USD $165 million can be exercised over the following 60-month period.
The USD $10 million funding will enable the company to construct the pipeline and feeder pipeline for its existing 8 proven gas wells and immediately drill and tie in an additional 8 wells this summer. The additional 8 wells have the same high probability of success as the 8 wells drilled previously, and the investor has expressed its commitment to exercise further warrants once these wells are tied in. In addition the Company will acquire up to 12,000 hectares of additional lands this summer, drill two wells and undertake a 3D seismic program to select further drilling locations on its Peace Arch property by the fall. The Company is planning to drill up to 156 additional gas wells on its existing Boyer lands in the winter of 2007/2008, which are expected to generate significant cash-flows and profits for shareholders. Currently Lotta Coal, Inc. has over 100,000 acres of land, which are all located in prime oil and gas producing areas of Alberta, and the company plans to further develop its existing properties as well as continue to acquire probable and producing properties.
Important Information About Forward-Looking Statements
Statements in this press release may be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,”"believe,”"estimate,”"expect,”"intend” and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company’s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on the Company’s website does not constitute a part of this release.
Contact: Alex Barta Vice-President, Communications and Investor Relations Tel (514) 991-2272 abarta@lottaenergy.com URL: www.lottaenergy.com
SOURCE: Lotta Coal, Inc.