EPI (HOLDINGS) entered into an agreement to spend CAD 1.3 million to acquire interests in Canadian oil wells

EPI (HOLDINGS) (00689.HK) announced that its indirectly wholly-owned subsidiary EP Resources Corporation entered into an agreement with BRW (the owner of mining rights) as the operator on June 30, under which EP Resources Corporation intends to participate in and acquire rights in the Provost area located approximately 450 kilometers northeast of Calgary, Alberta, Canada, to obtain rights to the oil well, and must pay BRW CAD 1.298 million (approximately HKD 7.4 million) for the oil well costs, which refers to 100% of the costs for drilling, completion, testing, equipment installation, and production or abandonment of the oil well.

Subject to obtaining regulatory approval, availability of drilling rigs, and surface access permits, BRW must commence drilling the oil well by July 31, 2025 (or another date mutually agreed upon in writing by both parties). During the recovery period, EP Resources Corporation will hold a 70% interest in the oil well, while BRW will hold 30%. After the recovery period, EP Resources Corporation's interest in the oil well will be 50%, and BRW's will be 50%.

The oil well costs are expected to be funded by the group's internal financial resources, including the net proceeds from the placement of new shares