NYSE Amex: BQI
CALGARY,
March 27, 2012 /PRNewswire/ -
Oilsands Quest Inc. (NYSE Amex: BQI) ("Oilsands Quest" or "the
Company") closed the previously disclosed sale of the Company's
non-core Eagles Nest asset to Cavalier Energy Inc., an unrelated
third party, on March 23, 2012, for
CDN$7.005 million.
On March 26, 2012,
Oilsands Quest signed the definitive loan agreements for the
previously announced debtor-in-possession financing in the amount
of CDN$2.85 million (the "DIP
Facility"). Funds from the DIP Facility are now available to the
Company for the purposes of funding operating costs and other
expenses while proceeding with the solicitation process.
The DIP Facility will terminate on the earlier of
March 26, 2013 or the termination of
the Order from the Alberta Court
of Queen's Bench (the "Court") providing creditor protection under
the Companies' Creditors Arrangement Act (Canada) ("CCAA").
On May 19, 2012,
Oilsands Quest received notice that the United States District
Court for the District of Colorado
approved the settlement relating to the derivative lawsuit
captioned Make a Difference Foundation, Inc. v. Hopkins, et
al., # 10-cv-00498 WYD-MJW (D. Colo.), which is substantially
similar to the proposed settlement that was disclosed on
November 9, 2011.
Oilsands Quest continues to operate under the
protection of the CCAA with the assistance of a Court-appointed
monitor. The Company's common shares remain halted from trading
until either a delisting occurs or until the NYSE permits the
resumption of trading.
About Oilsands Quest
Oilsands Quest Inc. (www.oilsandsquest.com) is
exploring and developing oil sands permits and licences, located in
Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands
discovery.
Forward-looking statements
This news release includes certain statements that
may be deemed to be "forward-looking statements." All statements,
other than statements of historical facts, included in this news
release that address activities, events or developments that
management expects, believes or anticipates will or may occur in
the future are forward-looking statements.
Forward-looking statements are statements other
than relating to historical fact and are frequently characterized
by words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "potential", "prospective" and other
similar words or statements that certain events or conditions "may"
"will" or "could" occur. Forward-looking statements are based on
the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking
statements, which include but are not limited to the ability to
raise additional capital, risks associated with the Company's
ability to implement its business plan, its ability to successfully
complete the previously announced solicitation process while under
creditor protection, its ability to submit a timely plan to its
stakeholders and the court under the CCAA and to resolve its
operational, legal and financial difficulties, the possible
delisting of its securities from NYSE Amex, risks inherent in the
oil sands industry, regulatory and economic risks, land tenure
risks and those factors listed under the caption "Risk Factors" in
the Company's Form 10-Q filed with the Securities and Exchange
Commission on March 8, 2012. The
Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change, except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements.
SOURCE Oilsands Quest Inc.