CALGARY, Sept. 25, 2014 /CNW/ - Marquee Energy Ltd.
("Marquee" or the "Company") (TSXV: "MQL") announces that it has
entered into a purchase and sale agreement for the sale of a
non-core, gas-weighted asset in the Pembina area of western
Alberta for total consideration of
$14 million, prior to customary
closing adjustments (the "Transaction"). The Transaction is
expected to close on or about September 30,
2014, subject to applicable regulatory approvals.
The asset's current production is approximately 300 boe/d (76%
gas-weighted) with an annualized cash flow of approximately
$2.3 million. Given the continued
drilling success in Marquee's core area at Michichi, the Company
expects to maintain its previously stated 2014 exit production
guidance of 5,500-5,700 boe/d.
Proceeds from the Transaction will provide Marquee with a
non-dilutive source of funding to increase the Company's financial
flexibility and potentially expand the drilling program at
Michichi. Initially, Marquee will use the proceeds to reduce its
bank debt, drawn under the Company's current credit facility of
$95 million. The disposition is
consistent with Marquee's long-term strategy to divest of the
Company's non-core assets and further exploit its delineated
asset base at Michichi.
Canaccord Genuity Corp. and National Bank Financial Inc. are
acting as Marquee's strategic advisors with respect to the
Transaction.
ABOUT MARQUEE
Marquee Energy Ltd. is a Calgary based, junior oil and gas company
focused on high rate of return oil development and production.
Marquee is committed to growing the company through exploitation of
existing opportunities and continued consolidation within its core
area at Michichi. The Company's shares are traded on the Toronto
Stock Exchange under the trading symbol "MQL.V" and on the OTCQX
marketplace under the symbol "MQLXF". An updated presentation and
additional information about Marquee may be found on its website
www.marquee-energy.com and in its continuous disclosure documents
filed with Canadian securities regulators on the System for
Electronic Document Analysis and Retrieval (SEDAR) at
www.sedar.com.
FORWARD LOOKING STATEMENTS OR INFORMATION
Certain statements included or incorporated by reference in this
news release may constitute forward looking statements under
applicable securities legislation. Such forward looking
statements or information typically contain statements with words
such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", or similar words suggesting future outcomes
or statements regarding an outlook. Forward looking
statements or information in this news release may include, but are
not limited to:
- 2014 capital budget and expenditures;
- business strategies, objectives and outlook;
- petroleum and natural gas sales;
- future production levels (including the timing thereof) and
rates of average annual production growth;
- exploration and development plans;
- acquisition and disposition plans and the timing and the
anticipated benefits thereof;
- anticipated cash flows;
- expected cost reductions and production efficiencies derived
from recently acquired assets;
- number and quality of future potential drilling locations
future drilling plans;
- expected debt levels;
- operating and other expenses;
- royalty and income tax rates; and
- the timing of regulatory proceedings and approvals.
Such forward-looking statements or information are based on a
number of assumptions all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things:
- the ability of the Company to obtain equipment, services and
supplies in a timely manner to carry out its activities;
- the ability of the Company to market crude oil, natural gas
liquids and natural gas successfully to current and new
customers;
- the ability to secure adequate product transportation;
- the timely receipt of required regulatory approvals;
- the ability of the Company to obtain financing on acceptable
terms;
- interest rates;
- regulatory framework regarding taxes, royalties and
environmental matters;
- future crude oil, natural gas liquids and natural gas prices;
and
- Management's expectations relating to the timing and results of
development activities
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by the Company and described in the
forward-looking information. The material risk factors affecting
the Company and its business are contained in Marquee's Annual
Information Form which is available under Marquee's issuer profile
on SEDAR at www.sedar.com.
The forward-looking information contained in this press release
is made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless required by applicable securities laws. The
forward looking information contained in this press release is
expressly qualified by this cautionary statement.
ADDITIONAL ADVISORIES
Boes are presented on the basis of one Boe for six Mcf of
natural gas. Disclosure provided herein in respect of Boe may be
misleading, particularly if used in isolation. A Boe conversion
ratio of 6 Mcf: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 crude oil as compared to
natural gas is significantly different from the energy equivalency
of 6:1, utilizing a conversion on a 6:1 basis may be misleading as
an indication of value.
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 release.
SOURCE Marquee Energy Ltd.