Rhino Energy Limited

Opportunity

Raising A$12M at A$0.10 per share to drill 12-14 wells to increase oil production prior to an ASX Listing

Business Highlights

  • Over ½ Billion Barrels of oil in place on 14,560 acres.
  • This development project currently produces over 600 bopd.
  • Drill up to 150 wells in 4 years to increase oil rate Net to Rhino to over 3,000 bopd.
  • Development wells cost <C$750,000 to drill, complete and commence production in ~3 weeks.
  • Plan to double acreage within the next 6 months.
  • Over 500 drilling locations identified with 100 wells ready to drill and 20 wells licensed for immediate drilling.
  • No abandonment liability with C$4.1M in credit.

Transaction Overview

Shares on Issue
Current Fully Paid Ordinary “A” Class Shares 98,000,400
New Shares to be Issued under this Offer 120,000,000
Offer price per Share A$0.10
Total Shares on issue after this Offer 218,000,400
Amount to be raised under the Offer A$12,000,000
Implied capitalisation at the Offer Price A$21,800,040

 

NOTE: There are convertible notes, convertible at A10c/share to the amount of $C2,000,000 and A$1,897,650 which, if exercised, will add approximately 40,926,340 shares to the register. It is intended to convert these and issue the shares at the time of listing the company on the ASX.

Capital Raised A$12,000,000
Drill 12-14 Production Wells A$9,300,000
Expenses of the offer (6%) A$720,000
Debt Repayment A$180,000
Admin/Overheads A$1,200,000
ASX Prospectus A$600,000

 

Company Overview

An Australian energy company with a focus on low-risk oil and gas development projects in North America.

Rhino Energy is currently in a joint venture with TSX:V listed Canadian oil and gas exploration company PetroFrontier Corp for the development of projects in the Cold Lake and Wabasca regions of Alberta, CA.

Cold Lake

The Cold Lake Interests include highly contiguous lease interests of approximately 16 sections in the Cold Lake area of northeastern Alberta. Production from these lands in the first quarter of 2016 reached approximately 340 barrels of oil per day, with current volumes at over 600 barrels of oil per day.

There are existing wells that can be completed or worked over in the near term to increase the current productive capacity with very low capital expenditures. Furthermore, management believes that, on the existing land base, there are over 200 additional potential drilling locations holding multi-zone potential for oil in the Mannville sequence (Colony, Sparky, Rex, Lloyd and Cummings zones).

The Company is in the early stages of its development of these Cold Lake Interests.

   

Wabasca

In early 2018, the PetroFrontier entered into a development agreement with Bigstone Oil & Gas Ltd., the wholly-owned energy company of the Bigstone Cree Nation. The agreement provides for the development of an initial 3,040 acres of oil and gas rights from the surface to the base of the Mannville in the Wabasca area of north-central Alberta (under lease to Bigstone Oil).

PetroFrontier considers this opportunity to be analogous to the conventional cold-flow heavy oil play being developed in the nearby Brintnell field. The prolific Brintnell field has produced over 420 million barrels of oil and is currently producing approximately 65,000 barrels of oil per day. This new core area for the PetroFrontier is within an area tightly held predominately by large energy companies.

Rhino Energy and PetroFrontier have completed formal documentation and further funding advance for development at Cold Lake and Wabasca.

Highlights

  • Current production is ~600 bopd
  • 10 producing wells
  • Low-Risk, Low-Cost development potential
  • Material Alberta Heavy Oil Project
  • Over 1/2 billion Bbl OIP
  • Strong First Nations Relationship

Environmental, Social and Governance

Rhino understands that strong environmental, social and governance performance is essential for the success and growth of the Company’s business. The Company is committed to managing its activities to minimise adverse workforce, community or environmental impacts.

Rhino is committed to the sustainable exploration and production of oil and gas.
Ensuring that their policies with regards to the environment and climate change are upheld.
Specifically, Rhino understands its obligations under the Climate Change and Emissions Management Act of Alberta.

Rhino and its JV partners acknowledge the traditional territories of the Bigfoot Cree and Cold Lake First Nations.

Through their JV partners Rhino maintains a very strong relationship with the First Nations of the territories the projects are on and continue to work alongside the Nations in our activities.

Rhino has comprehensive ESG policies within its corporate governance.

The policy provides guidance to the Company so it can regulate and provide adequate management of Company activities to minimise the adverse effects on the workforce, the community and the environment.

Low Risk Oil and Gas Developments

JV in Place

Strong Team

Building Company Value

Announcements

March 2022
JV between Rhino Energy & PetroFrontier

Read more

Team

Tom Fontaine

Managing Director

David Whitby

Executive Chairman

Blaise Thomas

Non Executive Director

David McArthur

Company Secretary

Clifton Mason

Executive Advisor

Gregor Mawhinney

Executive Advisor

Scott North

Operations Manager

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