Artisan Energy Announces Acquisition of MOGL Corp & Spur Energy Corp, Initial Closing of Private Placement and Annual General Meeting Results

CALGARY, ALBERTA--(Marketwired - Nov. 25, 2014) - Artisan Energy Corporation ("Artisan" or the "Corporation") (TSX VENTURE:AEC) is pleased to announce that it has completed its previously announced acquisition of all of the issued and outstanding shares (the "Acquisition") of each of MOGL Corp. ("MOGL") and Spur Energy Corp. ("Spur"), private oil and gas exploration and production companies with operations in Western Canada.

MOGL Acquisition

Total consideration paid by Artisan for all of the issued and outstanding shares in the capital of MOGL consisted of 10,810,000 units of Artisan ("Acquisition Units") at a deemed price of $0.25 per Acquisition Unit and 4,800,000 common shares of Artisan (each, an "Artisan Common Share") at a deemed price of $0.25 per Artisan Common Share. Each Acquisition Unit consists of one Artisan Common Share and one common share purchase warrant of Artisan, each warrant entitling the holder thereof to purchase one Artisan Common Share at a price of $0.30 per Artisan Common Share for a period of one year from the closing date of the Acquisition. The outstanding bridge loans owed by MOGL referred to in our October 1, 2014 press release, being $1.2 million in the aggregate, were converted into common shares of MOGL immediately prior to the completion of the Acquisition.

Pursuant to the Acquisition, Artisan is assuming approximately $2.9 million of bank debt of MOGL with a recognized Canadian financial institution.

Spur Acquisition

Total consideration paid by Artisan for all of the issued and outstanding shares in the capital of Spur consisted of 518,000 Artisan Common Shares at a deemed price of $0.25 per Artisan Common Share.

Assets Acquired Pursuant to the Acquisition

The assets to be acquired pursuant to the Acquisition are situated proximally to Artisan's Ferrybank oil production in Central Alberta (the "Assets"). The Assets are principally low decline natural gas wells currently producing in excess of 1.35 MMcf/day (225 boe/d). Based on the independent reserve evaluation of McDaniel & Associates Consultants Ltd. effective April 1, 2014, the Assets have a Proved Reserve Value (NPV10 before tax) of $6,206,300 and a Proved Plus Probable Reserve Value (NPV10 before tax) of $8,755,500. Artisan has identified several future development locations within the Assets.