Petro Viking Energy Inc. (CNSX:VIK) signed a letter of intent to acquire Mineral rights, associated wells, pipelines and facilities at West Central Alberta from 611890 Alberta Inc. for CAD 50.6 million on June 14, 2021. The consideration for the acquisition is being satisfied by issuance of 44.44 million class A common shares and 30 million convertible preferred shares convertible at a price of CAD 0.80 per share. Preference shares are convertible into common shares at 1:1 ratio. The Convertible Shares shall have a term of five years (5) and earn an accruing annual dividend at a rate of two percent (2%), payable upon conversion. The Conversion of the Convertible Shares at the election of the holder can only occur after one of three milestones has been achieved: a) the Company exceeds the production rate of 3,000 boe/d, b) the Common Shares trade at a volume weighted average price (VWAP) of more than CAD 1.00 per share for twenty (20) consecutive business days or c) the second year anniversary since the issuance of the Common Shares has occurred. Petro name shall be changing to Avila Energy Corporation, as approved at Annual General and Special Meeting held on October 15, 2021. An advisory & finder's fee, based on approved CSE guidelines, will be payable upon closing to an arm's length third party which has assisted the Company in coordinating and negotiating this transaction. The closing of the transaction is subject to the execution of a comprehensive purchase and sale agreement for the assets and remains subject to the execution of an all related applications and approvals necessary as would be customary within the industry in parallel to submission of all necessary applications and approvals including shareholders and the Canadian Stock Exchange. The conditions of approval being; the delivery of a Consent Resolution from shareholders representing more than 65% of Class A Common Shareholders of Petro and submission of all remaining documents and payment of associated filing fees with the CSE that are typically associated with a Fundamental Change. As of September 28, 2021 Resumption of trading of Petro Viking Energy Inc common shares remains subject to the approval of the Avila Transaction by the CSE. As of August 16, 2021 Leonard Van becomes newly appointed President and Chief Executive Officer of Petro. As of July 23, 2021, management of Petro recommends that shareholders vote in favor of the transaction. Petro obtained conditional approval from Canadian Securities Exchange. Closing is anticipated to occur upon completing the filing of all necessary documentation and the receipt of a Consent Resolution passed by a majority of not less than two thirds (2/3) of the votes cast by the shareholders of Petro Viking. The closing of the transaction is expected on or before October 31, 2021. As of November 17, 2021, the transaction is expected to close no later than November 30, 2021, unless otherwise agreed by Petro Viking Energy Inc. and 611890 Alberta Inc. As on November 25, 2021, Petro anticipates completion of acquisition will occur sometime by the end of December 2021, or such other date as Petro and Avila may agree. As of August 10, 2022, the transaction is subject to the approval of the voting shareholders of the Company set to take place on August 31, 2022. A material change is set to take place in the days following August 31, 2022. The acquisition was approved by Acquirer shareholder and is Expected to close in September 2022.

Avila Energy Corporation (CNSX : VIK) completed the acquisition of Mineral rights, associated wells, pipelines and facilities at West Central Alberta. on September 14, 2022.