PetroFrontier Corp. Secures $15.1 Million Funding Agreement

PetroFrontier Corp. has formalized a $15.1 million funding agreement with DeerGarden Resources Ltd. to develop its assets in Cold Lake, Alberta. The arrangement allows PetroFrontier to assign its interests to a limited partnership, receiving 99% of the partnership units. DeerGarden will contribute $14 million to the partnership in stages to support developmental activities over 2024 and 2025, including drilling new wells.

The funding structure allocates LP Units equally between PetroFrontier and DeerGarden after contributions, with income initially favoring DeerGarden. Additionally, a $1.1 million debt from DeerGarden will address PetroFrontier's outstanding accounts payable. The agreement is contingent on various approvals, with no assurance of completion.