Petrox Resources Signs Non-Binding Term Sheet with International Energy (HK) Group Limited

Petrox Resources Corp., trading under PTC, has entered into a non-binding term sheet with International Energy (HK) Group Limited for the supply of natural gas to on-site power generation in Alberta and Saskatchewan. The agreement is part of Petrox's cash-flow-first strategy, aimed at monetizing stranded or underutilized natural gas from its existing operations.

The role of Petrox will be that of the oil and natural gas party, originating, evaluating, and negotiating sites for the supply of natural gas. International Energy (HK) Group Limited will supply, fund, own, install, and operate the power generation equipment, computing equipment, or digital asset mining equipment.

The principal commercial terms include a price for natural gas that will be agreed upon for each site, potentially less than the AECO/NIT index price. Additionally, Petrox will receive a fee of US$0.01 per kWh generated by the power generation equipment, with qualified power generation measured at the generator output terminals.

The term sheet is non-binding, except for customary binding provisions regarding exclusivity, confidentiality, and other matters. The parties have agreed to deal exclusively for 90 days in respect of certain specifically identified sites, with exclusivity ending if the Company fails to provide complete data on time or ceases good-faith negotiations.