Westgate drops Moonshine acquisition, extends debenture

Executive Summary

• Westgate Energy has mutually terminated the acquisition of assets from a private oil and gas company (the "Moonshine acquisition") due to the inability to obtain required third-party approvals and consents.
• The vendor has returned the $700,000 deposit, including all interest earned, to Westgate Energy.
• In connection with the termination, Westgate and Director Art Agolli agreed to amend the convertible unsecured subordinated debenture (announced March 10, 2025) to extend the maturity date to February 27, 2026, and remove the requirement to use the deposit to satisfy the debenture principal, subject to TSX Venture Exchange approval.

Key Details

• Termination of Moonshine Acquisition: The company notified the vendor of its inability to obtain necessary third-party approvals/consents, leading to a mutual agreement to terminate the deal.
• Deposit Return: The vendor returned the $700,000 deposit to Westgate Energy, including all interest earned thereon.
• Debenture Amendment Terms:
  • Parties: Westgate Energy and Art Agolli (Director).
  • Instrument: Convertible unsecured subordinated debenture (previously announced March 10, 2025).
  • Maturity Extension: The maturity date is extended to February 27, 2026.
  • Principal Satisfaction: The requirement for the company to use the deposit to satisfy the outstanding principal amount of the convertible debenture has been removed.
  • Other Terms: All other terms and conditions of the convertible debenture remain unchanged.
  • Condition: The amendment is subject to TSX Venture Exchange approval.
• Operational Update (Beaverdam Program):
  • Three wells from the previously announced three-well Beaverdam asset drilling program are currently producing oil.
  • Management reports production rates are satisfactory.
  • A fulsome report on the new wells is expected in the coming weeks following their first 30 days of production.

Notable Quotes

• None explicitly quoted in the text, though management expresses pleasure with production rates.