Molori Energy Inc. (OTCQB: MOLOF) (TSX-V: MOL) Breaking News

May 22, 2018

Molori Energy Moves To Fill Out Red Cave Portfolio With Proposed Acquisition of Additional 5100 Acres

VANCOUVER, BC - May 22, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") announces today that the Company has signed an LOI (“Letter of Intent”) to purchase a 100% working interest of which Molori will be the operator of record in approximately 5,100 gross acres (collectively “the leases”) of land in Moore, Potter and Carson Counties, north Texas.

In conjunction with closing, Molori has agreed to pay USD $650,000 for a 100% working interest in the leases, some of which directly adjoin lands where “Adams Affiliates” of Tulsa, Oklahoma is presently developing oil and gas production from the Red Cave.

The approximately 5,100 acres are currently held by production (“HBP”) and contain a 75% NRI (“Net Royalty Interest”).

Of particular interest is an approximately 81 acre parcel of the overall 5,100 acres, which has 18 drill-ready well locations with estimated IP’s (“Initial Production”) of 50 bopd along with 300 mcfd, estimated EUR’s of 40,000 – 50,000 barrels of oil and under 6-month paybacks at oil prices of $50 WTI (“West Texas Intermediate”).

Commented Molori CEO Joel Dumaresq, “When completed, this latest land acquisition when combined with the recently announced Wolf Energy LOI (“Letter of Intent”), will provide Molori with approximately 40,000 gross acres with access to the Red Cave and over 1,000 potential well locations. Now that we have positioned the Company with a commanding Red Cave presence, we are now turning our attention to the development phase of our operations.”

Molori presently has underway (see press release from “May 7, 2018”) an independent reserve report on the Wolf Energy ‘Baker 39’ lease. Upon release of the report, the Company soon plans to share additonal details of its drilling and development plan.

Closing on the acquisition of the 5,100 acres is conditional upon financing, routine due diligence and all required regulatory approvals.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
Joel Dumaresq
CEO and Director
Molori Energy Inc.
(604) 336 3193
joel@molorienergy.com
www.molorienergy.com

SOURCE: Molori Energy Inc.
 

Molori Energy Signs LOI To Acquire Additional 30,000 Net Acres In Red Cave Oil Play

VANCOUVER, BC - May 7, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") announces today that the Company has signed an LOI (“Letter of Intent”) to purchase a 100% working interest of which Molori will be the operator of record in approximately 30,000 gross acres of land in conjunction with its Red Cave oil and gas development play in Moore County, Texas.

Upon closing, which is estimated to occur on or before June 30, 2018, Molori has agreed to pay USD $1,700,000 for a 100% working interest in existing oil and gas wells, salt water disposal wells, together with all interest in properties, facilities and equipment owned by Wolf Energy, LLC.

The approximately 30,000 acres in Moore County, Texas is held by production (HBP). The purchase includes 34 operated Red Cave wells, 1 salt water disposal well, 4 Red Cave wells that have not been fracked, along with 8 wells currently producing.

As a first priority in conjunction with the acquisition of the “Wolf” acreage, Molori has contracted an independent, third party technical report on Wolf’s “Baker 39” lease, which comprises 562 net acres of the 30,000 acres

The 16 existing Baker wells were drilled in the early 1990’s with initial production (IP’s) between 50-100 bopd per well. Furthermore, the Baker Lease is ready for production with a producing tank battery and good existing infrastructure.

Commented Molori CEO Joel Dumaresq, “This land acquisition announcement is the culmination of over a year of work in defining which Red Cave acreage we believe to be most prospective and assembling acreage. Our initial focus is upon the Baker 39 Lease which while only 562 acres of the overall 30,000 acres, provides infill drilling potential for as many as 55 wells upon 10-acre spacing. With 8 wells on this lease demonstrating historical IP’s of between 50 and 100 bopd, we are excited to commence the next phase of our development program.”

Upon completion of the acquisition of the Wolf acreage, and when added to its current acreage, Molori will have access to several hundred well locations upon 10-acre spacing and double that number should the Company eventually move to 5-acre spacing. Management of Molori believes that the shallow, lost cost, high-recycle rate of these Red Cave wells is what strongly differentiates this opportunity.

Closing on the acquisition of the Wolf acreage is conditional upon routine due diligence along with all required regulatory approvals.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.
Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

For further information, please visit the Company’s website at www.molorienergy.com or contact
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.

Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
Joel Dumaresq
CEO and Director
Molori Energy Inc.
(604) 336 3193
joel@molorienergy.com
www.molorienergy.com

SOURCE: Molori Energy Inc.

Molori Energy Doubles Down on Red Cave Oil Play

VANCOUVER, BC - April 25, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") announces today that the Company has completed upon a trade with its former operating partner Ponderosa Energy, LLC of certain marginally-productive leases in Hutchinson County, Texas whereby Molori will now have broad operatorship and hold a 100% interest in all of its Red Cave oil and gas development in nearby Moore County, Texas.

With oil prices (“WTI”) nearing $70 per barrel, Molori has made the decision to focus the majority of its monetary and human resources on development of the Red Cave. With the successful discovery on the recently drilled 23-1R well, Molori has validated its thesis by drilling into the Red Cave and discovering oil on its existing acreage. As a result, Molori’s management has elected to accelerate its development of the Red Cave where large-scale frac technology has proven to successfully unlock the ‘virgin pressure’ within the oil prone Red Cave formation.

Commented Joel Dumaresq, CEO of Molori, “We believe that the Red Cave play is one of the most promising onshore development opportunities in the continental U.S. today, and with oil testing the $70 mark the economics of the play is more than compelling and warrants our capital and attention.”

Molori’s plan is to move as quickly as possible to drill and frac the next well focusing upon a specific series of infill drilling targets which Molori’s technical team have identified and believe offer the opportunity to duplicate the broad success enjoyed by our neighbours at Adams Affiliates. To that end, Molori’s technical and operational people will now be in position to fully-concentrate their focus upon the next phase of our Red Cave development.

Over the past year, Molori spent over $300,000 and more than 2 man years of analysis completing what the Company believes is the definitive study on the previously poorly-understood Red Cave formation. The study focused upon the analysis of approximately 370 well logs and cores from wells that were drilled through the Red Cave and down into the now largely-depleted Brown Dolomite formation. It is from this study, as well as Texas Railway Commission data on Adams Affiliate’s own Red Cave development success, that Molori has established and been active upon an extensive land acquisition campaign in Moore County.

Further to its press release of March 16, 2018, the Company is also pleased to announce that following a short absence, Judy-Ann Pottinger has rejoined the Molori team and will immediately resume her role as “Director of Communications”.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.

Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
For further information, please visit the Company’s website at www.molorienergy.com or contact
Judy-Ann Pottinger
Communications Director
Molori Energy Inc.
(604) 617-5290
judy-ann@molorienergy.com
www.molorienergy.com

SOURCE: Molori Energy Inc.
 

Molori Commences Sales of Oil From Red Cave Further Demonstrating Proof of Concept

VANCOUVER, BC - April 18, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") is pleased to announce that the Company is selling oil produced from its Red Cave well the Thompson 23-1R.

The well was completed earlier this year following which the well was logged with the logs showing a hydrocarbon pay zone of approximately 40 feet across the 300 foot Red Cave zone.

In January, Molori’s Borger-based operational team completed a large-scale water frac on the Thompson 23-1R. An initial production (IP) rate of approximately 28 boepd was achieved., Molori’s ability to access light oil from the Red Cave demonstrates Proof of Concept of Molori’s thesis on the Red Cave Formation

Having completed an extensive analysis on the production patterns from the 23-1R well Molori's technical team has gleaned that revising its completion technique will achieve increased production rates. Future wells will include ball drops during the pre-frac breakdown and again during the water fracture treatments to divert the fluid and frac sand to treat the entire zone more uniformly. In addition, resin sand will be used during the tail of the job to reduce the amount of sand flow back during early production. It is expected that these fracture treatment changes will significantly enhance flow from the Red Cave zone in future wells.

Commented Joel Dumaresq, CEO of Molori: “Over 18 months ago Molori commissioned and has now completed, what we believe to be the largest and most extensive evaluation of the shallow Red Cave formation ever undertaken. Dozens of well logs have been accumulated and analyzed resulting in a strong understanding of this “virgin” and previously poorly understood hydrocarbon bearing formation. Now, Molori has validated its thesis by drilling into the Red Cave and discovering oil on its existing acreage. With this data in hand, Molori is now moving to complete upon its next phase of land acquisition, capitalizing upon its proprietary knowledge of the Red Cave ribbon of oil.”

The Company is now moving forward with its plan to drill the remaining wells in its series of 8 appraisal wells. The remaining well locations will be strategically focused upon sections of land situated within as little as 350 feet of Adam’s Affiliates Red Cave development where Adam’s Affiliates have succeeded in the past two years in drilling over 50 oil wells all of which have been discoveries and where typical IP rates have been greater than 40 boepd with standard EUR’s (“Estimated Ultimate Recovery”) of 40,000 boe.

Finally, Molori is pleased to announce that the Company has been selected to the “TSX Venture Top 50”. The TSX Venture 50 is a ranking of the strongest companies on TSX Venture Exchange by share price, trading volume and market capitalization. The winning companies have seen tremendous growth over the past year, offered remarkable return to their shareholders and are actively traded in the market.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

For further information, please visit the Company’s website at www.molorienergy.com or contact
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.

Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Joel Dumaresq
CEO and Director
Molori Energy Inc.
(604) 336 3193
joel@molorienergy.com
www.molorienergy.com
SOURCE: Molori Energy Inc.
 

Molori Energy's Thompson 23-1R Well Flows Oil

VANCOUVER, BC - February 22, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") is pleased to announce a commercial oil discovery on its acreage in Moore County, Texas.

The "Thompson 23-1R" well, operated by Molori Energy, is a northern step-out well drilled in December 2017 where Molori Energy holds a seventy five percent (75%) working interest via its Thompson 26 and Thompson T2 leases. These leases directly adjoin to leases owned and operated by Adams Affiliates of Tulsa, OK, a successful operator and producer in the Red Cave trend. The Thompson 23-1R well is directly north of the active development area of Adams Affiliates.

As announced previously, he 23-1R well was completed on January 22 nd, and was fractured with over 250,000 lbs sand and 340,000 gallons of slick water. The well has responded and produced on February 18th at 22 boepd*, 35 mcfd, and 61 bwpd for a blended production rate of approximately 28 boepd. The bulk of the water is load water which is consistently dropping with time, and the oil rate is steadily increasing with time. Peak production is expected within the next ten to fourteen days, following which Molori will be providing definitive results.

Furthermore, we have estimated that the reservoir pressure is 420 psia, which is consistent with original reservoir pressure in this area, and this location is not drained by offset production. The well log shows 100% oil pay with no gas cap. The log parameters are 37 feet of pay with 11.6% porosity with 39.8% Swi (Initial Water Saturation). These log results are very consistent with the near offset wells drilled recently by Adams Affiliates.

Commented Joel Dumaresq, CEO of Molori "We are extremely pleased with the 'discovery' and the initial results of our Thompson 23-1R well and frac into the Red Cave. The oil to water ratio continues to improve daily as we recover the water injected with the frac, and as a result we are experiencing daily increases in production."

Molori is expediting the installation of additional production tanks and moving forward with the continued development of its acreage in the area.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori

Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company's exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori's business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori's operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

For further information, please visit the Company's website at www.molorienergy.com or contact

Judy-Ann Pottinger
Communications Director
Molori Energy Inc.
(604) 617-5290
judy-ann@molorienergy.com
www.molorienergy.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.

Cautionary Notes Regarding Forward Looking Statements

This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", " budget ", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

www.molorienergy.com
SOURCE: Molori Energy Inc.
 

Molori Drills 48 Net Feet of Pay in Red Cave, and Successfully Completes Largescale Frac of 23-1R Well

VANCOUVER, BC - January 22, 2018 - Molori Energy Inc. (OTCQB: MOLOF)(TSX-V: MOL) ("Molori" or the "Company") is pleased to announce that it has drilled to target depth the first of eight planned Red Cave Appraisal wells (''The Thompson 23-1R Well'') upon the Company's Moore County, Texas acreage upon which Molori now holds a 75% working interest. The 23-1R well was drilled to a total measured depth of approximately 2,500 feet and was immediately logged.

After evaluating the open hole logs late last month, it was determined that production pipe should be run on the Thompson 23-1R.

The 'targeted' Red Cave zone covered 255 gross feet, of which 48 net feet was perforated. 42,000 gallons of treated water, chemical and ball sealers were used to break down the approximately 50 feet of pay in order to prepare for the frac of the Red Cave zone.

On January 20 th the well was successfully fracked with approximately 400,000 gallons of slick water and 250,000 lbs of sand.

Molori's Borger, Texas based operations team will next install a pumpjack over the 23-1R well and begin to flow the well to surface. A full analysis of the well will be completed and reported within the next two weeks.

About Molori

Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company's exploration arm is the underdeveloped Red Cave formation, and Molori along with its partners have engaged in a broad drilling program to assess and develop its Red Cave acreage. Molori's business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori's operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

For further information, please visit the Company's website at www.molorienergy.com or contact

Judy-Ann Pottinger
Communications Director
Molori Energy Inc.
(604) 617-5290
judy-ann@molorienergy.com
www.molorienergy.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.

Cautionary Notes Regarding Forward Looking Statements

This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additiona l capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", " budget ", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

www.molorienergy.com
SOURCE: Molori Energy Inc.

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About Molori Energy Inc.:

WAbout Molori Energy
​
Company Profile
Molori Energy Inc. (TSX.V: MOL) is an oil and gas production company with current operations in the Texas Panhandle. Founded in 2011, the experienced management team is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead.

Molori is thriving in an environment of low oil prices. The fact that Molori has no debt, has positioned the company extremely well to benefit from the continuing rebound in oil prices. Having no debt and cash on hand, is crucial to Molori's strategy to acquire assets and production during this period of low energy prices.

We are seeing plenty of bankruptcies and distressed sales among the small players, which creates an unprecedented opportunity for survivors with cash and low leverage.

With oil prices still down roughly 50% over the past few years, many oil producers are struggling just to survive as a result of the debt they incurred at much higher energy prices.

Molori is one of an emerging group of players who are working with regional banks and distressed companies to opportunistically acquire production on advantageous terms.

Molori’s business model focuses on assets with:

High working interest
Operational and infrastructure control
Low geologic risk
Low risk exploitable upside

Molori Energy
In the present day environment for energy, many companies are struggling with high debt loads incurred several years ago, while assembling oil production and exploration acreage when oil crested $100/bbl (“WTI”). In addition to these oil companies, many individual owners of acreage, along with regional banks active in the energy sector, are on the cusp of bankruptcy or insolvency as a result of poor loans and/or bad credits.

It is in this environment that Molori is seizing the opportunity to assemble oil and gas production in nearby and politically safe jurisdictions. Molori is pursuing a business plan, whereby the Company either purchases producing oil and gas assets at highly attractive rates, or in some cases simply takes on existing assets by way of purchasing or assuming default notes from small regional lenders and institutions. The Company has already proven itself capable of securing such assets at deep, deep discounts to what those assets sold for only a few years ago.

Better yet, Molori has demonstrated that it can make these acquisitions with little or no dilution to existing shareholders, and through forward sales of the resulting production, provide itself with capital to continue to roll-up or assemble profitable oil-producing acreage.

Texas Hugoton & Panhandle Field

On June 6, 2016, Molori Energy Inc closed on the purchase of a 25% working interest in the oil and gas production from certain leases owned by Texas-based Ponderosa Energy, LLC. In conjunction with the purchase (see Molori Energy Inc. press release dated June 2, 2016), Molori committed USD
$1,000,000 in working capital towards a program to complete workovers on the Texas-based leases in order to increase production.

Ponderosa, a domestic USA oil and gas production company, is the operator on the leases and is presently focused on aggregating and developing shallow conventional oil reserves in Texas.

Ponderosa purchased these leases from distressed operators with highly-leveraged balance sheets and an inability to fund operations.

Molori and Ponderosa have chosen to collectively pursue assets which specifically exhibit the following properties: shallow reservoir, low geologic risk, moderate decline rates, and existing infrastructure.

The focus of Molori and Ponderosa’s activities has been in the “Hugoton-Panhandle” field in Northern Texas.

The Hugoton-Panhandle field was the largest gas field in North America until the development of unconventional shale. The Anadarko Basin, which houses the Hugoton-Panhandle field, has produced over 125 trillion cubic feet of gas and 5.4 billion barrels of oil. Since the discovery of the Hugoton-Panhandle field in 1922, thousands of wells have been drilled to date. Due to the vast historical drilling and production data, there is a low geological risk associated with oil and gas development. The maturity of the field is crucial to Molori’s strategy of building reserves and resources, as decline rates are typically under 5% (year over year). Lastly, the liquids rich natural gas in this area, commands a premium over spot gas pricing. For these reasons, Molori is focused upon buying additional assets in this area.

​In aggregate, Molori has a 25% interest in the approximately 250 wells purchased by Ponderosa. Molori Energy Inc is continuing to back Ponderosa as it fulfills its operational obligations in redeveloping non-operating wells and bringing them back into production.

Our Strategy
Molori is pursuing a course that’s focused on profitable, predictable and steady performance. Management’s primary goal is to enhance shareholder value through the growth of underlying proven reserves with an emphasis on positive cash flow.

Acquire

Access to Capital Markets
Strong Balance Sheet
Experienced Team

Exploit

Invest in Technology
Workovers
Tight Cost Controls

Explore

Acquire More Acreage on Favorable Terms
Proven Jurisdictions
Local Partners

​Molori’s strategy is to build a production and exploration company of scale with a focus on conventional onshore oil and gas assets.

The Company intends to develop its acreage in the Texas Panhandle region which covers an area of 5,801 net acres, and has been independently assessed to have 15 mmboe of 2P reserves.

The Company is also aggressively pursuing opportunities to expand its presence in the U.S.A and other reliable jurisdictions in order to create further value for shareholders..

.SOURCE: http://www.molorienergy.com

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