PETROSHARE CORP. (OTCMKTS:PRHR) Files An 8-K Completion of Acquisition or Disposition of Assets

PETROSHARE CORP. (OTCMKTS:PRHR) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition of Disposition of Assets.

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As previously disclosed in its Current Report on Form8-K filed on January 22, 2019, PetroShare Corp. (the “Company”) entered into a purchase and sale agreement dated January 15, 2019 (“Agreement”) with Grizzly Petroleum Company, LLC (“Grizzly”), a Colorado limited liability company. On February 27, 2019, the Company completed the sale of the assets to Grizzly as contemplated by the Agreement.

The assets sold to Grizzly (collectively, the “Assets”) include all non-operated horizontal wells in which the Company had an interest, as well as the leases on which those wells are located, oil, gas and other hydrocarbons produced from the leases on or after the Effective Time, related equipment, machinery, fixtures and other personal property, surface rights and contracts. The Agreement was effective January 1, 2019.

The Sale does not include any of the Company’s interest in the operated wells comprising its Shook Pad. The net purchase price received by the Company for the Assets was approximately $15.5 million in cash, net of closing costs and adjustments.

Item 8.01 Other Events

to the provisions of the Secured Term Credit Agreement dated February 1, 2018 to which the Company is party, the lenders consented to the sale of the Assets on the condition that the proceeds of sale were placed in a bank account controlled by the lenders. The lenders will determine the disposition of the proceeds, which may include payment of the Company’s accrued liabilities and/or accounts payable, repayment of a portion of amounts outstanding under the Secured Credit Agreement, or working capital.

Cautionary Statement

This Current Report on Form 8-K includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Exchange Act. Forward-looking statements can be identified by words such as “anticipates,” “believes,” “forecasts,” “plans,” “estimates,” “expects,” “should,” “will” or other similar expressions. Such statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. These forward-looking statements include, but are not limited to, statements regarding disposition of the proceeds of the Sale. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to: decisions of third parties over which the Company has no control and the other risks discussed in the Company’s periodic filings with the Securities and Exchange Commission (“SEC”), including the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and other reports filed with the SEC. The Company undertakes no obligation to publicly correct or update the forward-looking statements in this report, in other documents, or on the website to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.

About PETROSHARE CORP. (OTCMKTS:PRHR)

PetroShare Corp. is an independent oil and natural gas company. The Company focuses on acquisition, exploration and development of crude oil and natural gas prospects. Its properties are located in Colorado. It has interest in over two gross wells and approximately 3,100 gross acres of oil and gas properties. It has interests in over two crude oil and natural gas prospects, including Buck Peak prospect, which is located in Moffatt County, Colorado, and Todd Creek Farms prospect, which is located in Adams County, Colorado. Its working interest position in the Buck Peak prospect is concentrated in one 672-acre section, including over two drilled wells. It focuses on acquiring acreage and development of the Todd Creek Farms prospect. Its focus in both prospects is the Niobrara formation, which is a calcareous shale rock formation varying from 200 to 1,500 feet in thickness and extending from Canada to New Mexico with the oil and natural gas concentration located in Colorado and Wyoming.

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