For Immediate Release
Vancouver, B.C. – January 26, 2023 – Oceanic Wind Energy Inc. (TSXV-NEX: NKW.H) (“Oceanic” or “Company”) today announced its financial results for the three months ended September 30, 2022. Oceanic is a minority owner of a Limited Partnership that holds the development rights to an offshore wind project located in Hecate Strait off the coast of British Columbia, Canada (the “Project”). Northland Power Inc. (TSX:NPI) (“Northland”), a global offshore wind developer, owner and operator of sustainable infrastructure assets is responsible for all aspects of the Project’s development.
Upon Development of the project, Oceanic has the right to receive the following:
- upon the project reaching its financial close, as defined in the Agreements, a payment based on the size of the developed project ($67,500 per installed megawatt (“MW”) to a maximum of $33,750,000);
- upon the project becoming operational, future payments consisting of 35% of annual cash distributions from the project after the operating costs and a specified return on equity have been recovered by Northland; and
- subject to financial close of the project, an option to purchase up to a 10% interest in Northland’s interest in their project.
An overview of Oceanic’s year-end results includes:
- As at September 30, 2022, Oceanic had $49,926 in cash and cash equivalents, compared to $238,303 at September 30 2021. Subsequent to year-end the Company closed on a private placement raising $250,000.
- For the fiscal year ended September 30, 2022, Oceanic incurred a net loss of $0.4 million ($0.01 per share), compared to $.3 million ($0.00 per share) for the year ended September 30, 2021.
The wind project is the only project of significant utility scale in the region and with the remarkable advances in offshore wind development, the project is competitive to help meet the long-term electricity needs of British Columbia. It can help the province meet its 2030 CleanBC policy objectives and reduce the province’s dependence on hydrocarbons for more than 70% of its energy. With Northland as the developer, the need for renewable energy to power BC’s future, and the strong support from the federal government to reduce GHG to support Climate Change commitments, Oceanic remains optimistic the project will be developed in the near future.
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to several risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
Michael O’Connor, President & CEO
Oceanic Wind Energy Inc.
Tel: 604-631-4483
Email: moconnor@oceanicwind.ca
