- Bayshore Petroleum and AA Investment Holdings sign consulting services agreement
- The former will act as ‘general manager’ for Popular Creek oil sand property
- CEO Peter Ho describes agreement as a “unique opportunity”
- Agreement ‘opens door’ to future participating interest
- No movement on shares, which were trading at CAD$ 0.02 per share
Bayshore Petroleum have signed a consulting services agreement with AA Investment Holdings to provide project management services to the latter’s Popular Creek oil sands property.
Under the agreement, Bayshore Petroleum will undertake regulatory compliance, technology development, project costing and scheduling, property maintenance duties and serve as property’s general manager for a period of 12 months, and at an agreed monthly fee.
CEO Peter Ho described the move as a “unique opportunity” and hopes Bayshore Petroleum could have a future participating interest in the project.
“We are excited to partner with A.A. in this initial stage of evaluation of the Poplar Creek Properties which will include the testing of new technological concepts aimed at enhancing the process of recovery of oil sands in Alberta and upgrade the produced bitumen,” he said.
Bayshore is familiar with Poplar Creek through various dealings with the previous owner… (and) with the successful evaluation, including extending the property expiry dates beyond 2020, we see a unique opportunity to ultimately work towards acquiring participating interest in the oil sands properties in 2021,”
“The agreed monthly consulting fee under the agreement is sufficient to cover a majority of the company’s ongoing corporate expenditures but (we) continue to seek additional sources of financing in order to allow the Company to advance its strategic initiatives.”
AA Investment Holdings has a 100% working interest in oil sands mineral rights for oil leases with substantial bitumen resources in Popular Creek, and as Bayshore Petroleum does not have a stake in the property the company is not required to incur evaluation, maintenance or development costs.
However, the agreement gives the company the right to participate up to 20% of the development of Popular Creek when the cost estimates and plan of development have been defined.
Should this occur, a separate joint venture or similar arrangement will be entered into by Bayshore Petroleum and AA Investment Holdings. However, participation rights end with the termination of the consulting services agreement.
At the time of writing there was no movement on Bayshore Petroleum shares, which were trading at CAD$ 0.02 per share. It has a market capitalization of CAD$1.6 million.