Bi-monthly corporate update

Tickers: XTSX:CEA
Tags: Oil & Gas

TheNewswire / November 14, 2017 / Cerus Energy Group:

Objective

The objective of Cerus Energy Group (TSXV:CEA) is to build a premier energy portfolio of development interest through its proprietary CWI (Carried Working Interest) capitalization structure.

Strategy/Investment process

Cerus uses a formal Development Finance Program (or DFP) structure to enhance the management and placement of investment capital. Our Finance Program is suitable for long and short-term capital projects with the capability of retained expansion through the provision of rolling development options. The DFP both uses and optimizes a series of revenue sharing mechanisms to recover investment capital and associated fees from inner corporate investments.

Update Cut Off – Nov 13th, 2017 Market Close

Event

Performance

Nov 13th 2017 – One Year Trading Chart

New Wells Spudded

1


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New Wells Completed

0

Wells in Active Paying Out

0

Wells Post Payout

0

Active CWI’s

1

Performing CWI’s

0

Post Payout CWI’s

0

Drill Sites Under Obligation

7

Current Drill Commitment

$ 10,500,000 CAD

Locations Under Option

104

MOODY’s Rating

Un-Rated

S&P Rating

Un-Rated

PDU: Proved Undeveloped, CWI: Carried working Interest, Spudded: New wells that have been started.


Period of Performance
The Company kicked off its inaugural DFP development in the first half of November. The 101/14-15-18-17W3 location was spudded on November 13
th, 2017. The Company anticipated the reviewing of production results by end of the month. The company funded the program through the Lomac Syndicate Program to a non-arm’s length financier. The financier will retain 160% of the total 180% Penalty Payout on the Pennant, Saskatchewan Play. The tailing 20% and 5% GORR with be retained by Cerus as an earned margin and retained royalty.

The first well will be drilled, completed and evaluated before the program is continued. The Company based its internal cash flow models on 100 bbl/d for a successful program yield. The Company remains optimistic that the test results will validate significant upside to the company’s benchmark for success which is aided by the current US exchange rate and price of WTI.

*The performance highlighted is past performance and is not a guarantee of future results. Energy companies are subject to certain market risks and the information contained is believed to be accurate at the date of presentation. Investment performance and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. Further explanation: 1. Current Drill Commitments: Are the number of locations required to meet commitments outlined in active CWI agreements. 2. Locations Under Option: Identified locations that are in addition to the CWI primary commitment that the company has the option to develop post primary commitment completion. 3. CWI: is an Cerus developed Carried Working Interest for the purpose of oil and gas participation and funding. Additional information can be obtained from www.cerusenergy.com or call 1-877-837-8864.

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