CALGARY,
Aug. 29, 2011 /PRNewswire/ -
(TSXV: PFC) - PetroFrontier Corp. ("PetroFrontier") today
released its financial and operating results for the second quarter
of 2011. A copy of PetroFrontier's unaudited condensed
consolidated financial statements and related management's
discussion and analysis ("MD&A") can be accessed either at
www.sedar.com or on PetroFrontier's website.
Second Quarter 2011 Highlights
- On May 31, 2011, PetroFrontier
closed the acquisition of Texalta Petroleum Ltd. ("Texalta") by way
of a plan of arrangement pursuant to the provisions of the
Business Corporations Act (Alberta). PetroFrontier issued a total of 15.4
million common treasury shares at a fair value of $3.05 per common share and paid $10.0 million in cash consideration on a pro rata
basis for all of the issued and outstanding Class A common shares
of Texalta. As a result:
-
- PetroFrontier's working interest in EP 103 and EP 104 increased
to 100%.
- When combined with its 75% working interest in EP 127 and EP
128, PetroFrontier has an average working interest of 85.5% in 13.6
million acres of land.
- PetroFrontier acquired approximately 115 bbls/d of high
netback, light oil production at Wordsworth and Queensdale in
southeast Saskatchewan, as well as
exploration properties at Carlyle,
Saskatchewan and Joarcam, Alberta.
- With current working capital of $38.4
million and no debt as at June 30,
2011, PetroFrontier has adequate funding to provide for
general operations and the execution of the budgeted 2011
exploration program.
- Capital expenditures incurred during the six months ended
June 30, 2011 totaled $5.0 million and related primarily to drilling
preparations in the Southern Georgina Basin.
Subsequent Events
- In July 2011, PetroFrontier
announced that its Board of Directors had adopted a Shareholder
Rights Plan (the "Rights Plan"). This Rights Plan was adopted to
ensure the fair treatment of shareholders in connection with any
take-over offer for PetroFrontier, and to provide the Board of
Directors and shareholders with additional time to fully consider
any unsolicited take-over bid. The Rights Plan will also provide an
opportunity, if appropriate, to pursue alternatives in order to
maximize shareholder value. The Rights Plan is subject to approval
by the TSX Venture Exchange, as well as by PetroFrontiers'
shareholders at its upcoming annual general and special
shareholders' meeting scheduled for early November 2011. If ratified by the shareholders,
the Rights Plan will have a term of three years.
- On August 3, 2011, PetroFrontier
commenced drilling its first exploratory well, Baldwin-2, located
in in the southern part of EP 103 in the Southern Georgina Basin.
PetroFrontier is now proceeding forward with the horizontal section
of the Baldwin-2 well bore and the primary target is the
unconventional Basal Arthur Creek "hot" shale. PetroFrontier has a
100% working interest in EP 103 and is the operator.
Additional Information
PetroFrontier's Annual and Special General Meeting of
Shareholders will be held on Tuesday
November 8, 2011 at PetroFrontier's Conference Centre, Main
Floor, 715 5 Ave. SW, Calgary, Alberta,
Canada beginning at 3:30 p.m.
(MT)
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in
the exploration, acquisition and development of both conventional
and unconventional petroleum assets in Australia's Southern Georgina Basin.
PetroFrontier's common shares are listed on the TSX Venture
Exchange under the symbol "PFC". Founded in 2009, PetroFrontier is
one of the first companies to undertake exploration in the Southern
Georgina Basin in Australia's
Northern Territory. PetroFrontier's head office is based in
Calgary, Alberta and operations
office is in Adelaide,
South Australia.
Forward-Looking Statements
This press release may contain forward-looking information
that involves substantial known and unknown risks and
uncertainties, most of which are beyond the control of
PetroFrontier, including, without limitation, statements pertaining
to PetroFrontier's drilling plans, capital expenditures and
operations. All statements included herein, other than
statements of historical fact, are forward-looking information and
such information involves various risks and uncertainties.
There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in PetroFrontier's disclosure documents on the SEDAR
website at www.sedar.com. Any
forward-looking statements are made as of the date of this release
and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise
them to reflect new events or circumstances.
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 PetroFrontier Corp.