Financings
Decimus Oil Announces Non-Brokered Financing
WCSB · Price
Executive Summary
- Decimus Oil Corp. announced a non‑brokered private placement of up to 42,500,000 units at CDN $0.08 per unit, targeting gross proceeds of up to CDN $3.4 million.
- Each unit consists of one common share and half of a warrant; the warrant allows purchase of an additional share at $0.12 for 12 months, with an acceleration clause if TSX‑V price stays ≥ $0.15 for ten consecutive days.
- Proceeds are earmarked for capital projects that together could lift corporate production from ~176 boe/d (Q2‑25) to ~400 boe/d, a >125% increase, and improve netbacks and cash flow.
Key Details
- Offering Size: Up to 42.5 million units
- Unit Price: CDN $0.08 per unit
- Maximum Gross Proceeds: CDN $3,400,000
- Composition of Each Unit:
- 1 common share
- ½ warrant (full warrant gives right to purchase 1 additional common share at $0.12)
- Warrant Terms:
- Exercise price: $0.12 per share
- Validity: 12 months from issuance
- Acceleration clause: If TSX‑V closing price ≥ $0.15 for ten consecutive days, Decimus may force exercise; holders then have 30 days to act after press release.
- Holding Period: Statutory four‑month plus one day lock‑up on all shares and warrants.
- Finder’s Fee: Up to 8% of gross proceeds may be paid to a finder.
- Closing Condition: Subject to TSX Venture Exchange approval.
Use of Proceeds (Capital Budget)
| Project | Estimated Cost | Expected Production Impact |
|---|---|---|
| Murray Lake – Mannville step‑out well | $1,000,000 | +75–90 boe/d (97% oil) → field output >100 boe/d |
| Bantry Acquisition reactivation | $550,000 | +100–135 boe/d (100% gas) from Brooks & Namaka fields |
| Vulcan 5‑21 facility upgrade | $96,000 | Enables third‑party processing of 40–70 m³/day fluid, doubling related income |
| Parkland vertical re‑entry (Upper Bow Island) | $65,000 | +40–50 boe/d (100% gas) |
| General working capital | Remainder of proceeds | Supports ongoing operations and corporate overhead |
Combined with existing Q2‑25 base production of 176 boe/d, the above projects are projected to raise total company output to ~400 boe/d, reducing fixed costs per boe and improving netbacks (estimated capital efficiency ≈ $15,200 per flowing boepd).
Additional Transaction Notes
- Insiders may participate; exemption relied upon under Canadian Multilateral Instrument 61‑101 sections 5.5(a) & 5.7(1)(a).
- Securities are not registered in the United States and cannot be offered or sold there absent registration or an applicable exemption.
Notable Quotes
“This financing will further position Decimus to execute on its most profitable capital projects all focused in Southern Alberta, aimed at increasing production to over 400 boe/d, representing a +125% increase over existing Q2/25 production, while also adding material value to the Company’s net asset value.” – Cameron MacDonald, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the release.
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