Decimus Oil Announces Execution Of Definitive Agreement To Acquire Bantry Assets

Executive Summary

• Decimus Oil Corp. signed a definitive agreement to acquire the Bantry assets in Southern Alberta for $100,000 cash (plus GST), expected to close on Nov 1 2025 pending AER approval.
• The acquisition will increase corporate production from ~176 boe/d (Q2‑25) to an estimated 295–305 boe/d, a ≈41 % boost, with the acquired fields contributing ~122 boe/d net after reactivation.
• Purchase price represents <0.92 × annualized cash flow (based on AECO $3.00/mcf), making the deal highly accretive; expected annual cash flow from the assets is ≈ $0.11 M.

Key Details

• Purchase Price & Structure – $100,000 payable in cash at escrow closing; subject to customary adjustments and regulatory approvals (Alberta Energy Regulator, TSX‑V).
• Effective Date: November 1 2025.
• Assets Acquired – Two shut‑in gas fields (Brooks and Namaka) with historic production of 735 mcf/d (~122 boe/d net), comprising 42 gross / 28 net wells at Brooks and 10 gross / 9 net wells at Namaka, plus associated pipelines, batteries and processing facilities.
• Production Impact – Post‑closing production forecast: 122 boe/d (net) from Bantry assets; corporate total projected 295–305 boe/d. Historical decline rate <6 % per year.
• Financial Metrics –
• Annualized cash flow from acquired assets: ≈ $0.11 M (based on 127 boe/d @ $3.00/mcf).
• Purchase price multiple: <0.92 × annual cash flow.
• Netback estimate: $2.44/boe (Revenue $18.00, Processing $2.64, Royalties $0.90, Operating Costs $17.30).
• Asset Adjustments – Revised purchase reduces gross wells from 135 to 52 (≈19 % production reduction) but also cuts future ARO obligations by ~67 %, lowering capital and fixed‑cost exposure.
• Synergies & Upside – ~50 identified re‑entry/workover targets in the Belly River/Medicine Hat formation; existing infrastructure provides third‑party processing income and supports further development.
• Closing Conditions – Escrow deposit of $100,000 + GST held by trustee; release upon AER approval, license transfers, court order, TSX‑V clearance, and other customary conditions.
• Management Quote – “The Bantry Acquisition will increase production, future drilling inventory, and existing cashflows, while complementing our existing portfolio of low decline, long‑life reserves and accelerating our growth plans in Southern Alberta,” – Cameron MacDonald, President & CEO.

Notable Quotes

“The Banty Acquisition will increase production, future drilling inventory, and existing cashflows, while complementing our existing portfolio of low decline, long‑life reserves and accelerating our growth plans in Southern Alberta.” – Cameron MacDonald, President & CEO

Materiality: Material – Positive (the transaction is accretive, materially expands production and reserves, and includes detailed financial metrics).