PARK PLACE ENERGY INC. (OTCMKTS:PKPL) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into Material Definitive Agreement |
Park Place Energy Inc. (Park Place or the Company) has received
the final regulatory approval to purchase three oil and gas
exploration and production companies operating in Turkey from
Tiway Oil B.V. (Tiway).With all required regulatory approvals now
in hand, the Company and the seller are now working on the
documentation to close the transaction. Closing is anticipated to
occur later this year or in January 2017.
As previously announced, in December 2015, Park Place entered
into a Share Purchase Agreement with Tiway to acquire the three
subsidiaries of Tiway (the Tiway Companies).The Tiway Companies
are oil and gas exploration and production companies operating in
Turkey.They own interests in 3 producing oil and gas fields, one
offshore and two onshore, as well as a number of exploration
licenses and operate one of the onshore fields.The purchase price
is $2.1 million USD. The effective date of the transaction is
January 1, 2016. The transaction was subject to the satisfaction
of several closing conditions, including the approval of Turkish
gas marketing agency, the Energy Market Regulatory Authority of
the Republic of Turkey, and the approval of the Turkish agency
that regulates petroleum affairs, the General Directorate of
Petroleum Affairs of the Ministry of Energy and Natural Resources
of the Republic of Turkey, both of which have now been obtained.
The Tiway Companies report that current production is about 300
BOE/D (year-to-date average 402 BOE/D) (barrels of oil equivalent
per day).Approximately two-thirds of the production is gas
(selling now at about $6.50 per mcf) and one-third of the
production is oil (selling at a slight discount to Brent). The
Company is planning operations to enhance production levels
post-closing.
The Company is continuing its efforts to raise capital for this
transaction and for costs of operations on the properties in
Turkey after closing.
In Bulgaria, the Company is still awaiting clearance to commence
its license activities.In April 2014, the Company entered into a
license agreement covering a coal bed methane play in Northeast
Bulgaria.Prior to commencing work on the license, the Company
secured the approval from the Bulgarian environmental agency of
its work plans.This decision was appealed to an administrative
court.The most recent administrative court proceedings appear
favorable and it is anticipated a decision will be forthcoming in
early 2017.
| Item9.01 | Financial Statements and Exhibits |
(d) Exhibits.
The following exhibits are furnished in accordance with the
provisions of Item 601 of Regulation S-K:
| Exhibit Number | Description | |
| 99.1* | Park Place Press Release dated November 29, 2016 |
| * | Included herewith. |
About PARK PLACE ENERGY INC. (OTCMKTS:PKPL)
Park Place Energy Inc. is an energy company. The Company is engaged in exploration for oil and natural gas, primarily in the Dobrich region of northeast Bulgaria. The Company’s Vranino project is situated in close proximity to a gas pipeline in northeast Bulgaria. The Company intends to initially drill approximately five exploration wells. The Company’s oil and gas properties are located in Bulgaria. The Company has not generated any revenues. PARK PLACE ENERGY INC. (OTCMKTS:PKPL) Recent Trading Information
PARK PLACE ENERGY INC. (OTCMKTS:PKPL) closed its last trading session down -0.010 at 0.400 with 28,940 shares trading hands.