UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): January 13, 2016
______________
PROPELL TECHNOLOGIES GROUP, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
000-53488 |
26-1856569 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
1701 Commerce Street, 2nd Floor, Houston,
Texas 77002
(Address of Principal Executive Office)
(Zip Code)
(713) 227-0480
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01.
Regulation FD Disclosure
On January 13, 2016, Propell Technologies Group, Inc.’s
CEO issued a letter to shareholders. The full text of the CEO letter to shareholders is attached hereto as Exhibit 99.1.
The information set forth in Items 7.01 and 9.01 of this current
report Form 8-K, including the attached exhibit, is being furnished to the SEC and shall not be deemed "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise subject to the liabilities
of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933
or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements
and Exhibits
The following exhibit is being filed as
part of this Report.
Exhibit
Number |
Description |
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99.1 |
Letter from CEO to shareholders of Propell Technologies Group, Inc. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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PROPELL TECHNOLOGIES GROUP, INC. |
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By: |
/s/ C. Brian Boutte |
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Name: |
C. Brian Boutte |
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Title: |
Chief Executive Officer |
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Date: January 13, 2016
Exhibit 99.1
Propell Technologies CEO Issues Letter to Shareholders
Propell Technologies
Group, Inc. (OTCQB:PROP)
(the "Company"), the U.S. provider of a plasma pulse based enhanced oil recovery
technology, today issued the following letter to shareholders.
Dear Shareholders,
I am very pleased to take the opportunity in this letter to
introduce myself as your new CEO, to discuss recent developments at Propell and communicate our strategy to grow shareholder value
going forward.
This year we expect will bring transformative changes to our
Company, both on the corporate and strategic front.
The most significant is our plan to enter the exploration and
production (E&P) business, acquire producing assets and leverage Propell’s patented plasma pulse technology to improve
production.
The board of directors and I believe the current transitional
period in petroleum E&P provides exceptional opportunities to apply our M&A and operational expertise to acquire and operate
quality assets at low prices. We expect to
| 1. | acquire and grow distressed, producing assets through superior operational capabilities and efficiencies, and |
| 2. | once oil prices strengthen, focus on reserve value creation and asset divestiture to other entities who will pay premiums for
reliable and optimized production, such as Master Limited Partnerships (MLPs). |
The purpose of this letter is to shed light on how we intend
to achieve these strategic objectives, our near term milestones and what we believe to be our unique ability to execute on this
plan.
This is the first of a number of periodic updates on our progress
and strategy we expect to release over the coming year so that you can be more connected and informed as a valued shareholder.
I also want to recognize and applaud the efforts of my predecessor,
John Huemoeller II who oversaw the commercial introduction of Plasma Pulse to the U.S. oil industry, the granting of a U.S. patent
to the Company and the achievement of a valuable strategic partnership with Ervington Investments.
Relevant Background
I am a third generation oil and gas professional. The
early stages of my own career were technical, underpinned by geology and geophysics. This progressed into several senior management
positions spanning more than 37 years of international and domestic E&P, business development and M&A.
Strategic Transition
Now, after a good two years of operational experience with Plasma
Pulse, we have a better understanding of its capabilities and through the Novas Energy North America (NENA) joint venture have
accelerated the growth of infrastructure required to expand its commercialization and apply it to proprietary assets acquired on
favorable terms.
So a logical evolution of the strategy, especially during the
current buyers’ market, which has been discussed in our prior corporate communications, would be to acquire distressed conventional
assets.
Our plan is to optimize our assets and achieve superior shareholder
value through increased production and proved reserve volumes from operational efficiencies, plasma pulse applications, drilling/workover
programs, prudent capital allocation and general cost cutting.
Our Advantage
Over the years I’ve learned the key to E&P M&A
success is a combination of consistent and reliable capital, rigorous due diligence, expeditious closing ability and superior execution.
Our largest shareholder provides us with capital access, rare
for many independent oil companies of our current stage and size. Such reliability of capital should allow us to secure assets
at more favorable terms and achieve greater margins, especially important in the current low oil price environment.
We believe the advantage of savvy in originating and performing
due diligence required to close an acquisition expeditiously translates directly into greater value assets for lower costs. The
team we intend to create has an unsurpassed track record in closing transactions speedily and on the best possible terms.
In addition, by using this technical and operational advantage
to also drive our execution ability to optimize and improve our assets, we expect to achieve higher profits and a greater return
on capital.
Initial Strategy in Low Oil Environment: Acquire and Grow
Production
In the current low oil price environment, we will seek to acquire
distressed untapped inventory in proven hydrocarbon producing areas, balanced against contract/execution risk, reducing cost and
mitigating risk through internal financing and possibly further strategic partnering. We intend to leverage our strong balance
sheet to establish superior technical and operational capabilities with key E&P hires and organization building.
End of Second Quarter Objectives
We plan to move swiftly to achieve these
new objectives
| ● | Reshape the Company into an E&P focused entity by initiating a near term acquisition with production. |
| ● | Use plasma pulse technology as a significant strategic edge over competitors to enhance production as applicable. |
| ● | Expand and reshape our plasma pulse technology licensing domestically and internationally. |
| ● | Build our E&P Company bench strength, by adding experienced key operational and financial management. |
| ● | Unify company affiliates into one headquarter office location in Houston. |
| ● | Release a new corporate presentation and investor awareness program that dynamically updates stakeholders about progress on
our plan. |
Secondary Phase in Higher Oil: Resource Conversion
Oil production and use will eventually reestablish global supply/demand
equilibrium.
When it does, and the commodity can regain its footing with
higher prices, our strategy will transition to an emphasis on bookable reserve growth and resource conversion driven by acquisition
of large, repeatable drilling programs in known hydrocarbon bearing areas and further operational streamlining.
The board of directors and I are enthusiastic about the transformation
occurring with Propell should provide significant added shareholder value. In the coming months, I look forward to meeting with
shareholders and continuing to provide regular updates.
Sincerely,
C. Brian Boutte
SAFE HARBOR
This investor update includes forward-looking statements of
our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology
such as "may," "should," "potential," "continue," "expects," "anticipates,"
"intends," "plans," "believes," and similar expressions. These statements are based upon current
beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict
and include statements regarding the transformative changes we expect this year, the opportunities available to acquire and operate
quality undervalued assets at low prices, our ability to optimize our assets value through increased production and proved reserve
volumes from operational efficiencies, plasma pulse applications, drilling/workover programs, prudent capital allocation and general
cost cutting, our ability to close an acquisition expeditiously with greater value for lower costs, and our ability to use our
technical and operational skills to achieve higher profits and a greater return on capital, leverage our balance sheet to establish
superior technical and operational capabilities and otherwise achieve our second quarter objectives. These forward-looking statements
are subject to various risks and uncertainties that could cause actual results to differ materially from those set forth or implied
by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected
in our forward-looking statements include, among others, our ability to effect the transformative changes we expect this year,
find suitable acquisitions, optimize our assets through increased production and proved reserve volumes from operational efficiencies,
plasma pulse applications, drilling/workover programs, prudent capital allocation and general cost cutting, use our technical and
operational skills to achieve higher profits, leverage our balance sheet to establish superior technical and operational capabilities
and the other factors described in our Form 10-K for the year ended December 31, 2014, and our other filings we have made or may
make with the SEC. The information in this press release is provided only as of the date written, and we undertake no obligation
to update any forward-looking statements contained in this press release on account of new information, future events, or otherwise,
except as required by law.
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