Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces that it has entered into an agreement with Toscana Energy Corporation (“TEC”), a member of the Sprott Group of Companies, to terminate the management agreement (the “Management Agreement”) pursuant to which Toscana engaged TEC to carry out manager services for and on behalf of Toscana (the “Internalization” or the “Transaction”). The Internalization is to be effective at 11:59 p.m. (MST) on March 31, 2018 (the “Effective Time”).
Pursuant to the Internalization, the fees payable by Toscana to TEC pursuant to the terms of the Management Agreement, including, but not limited to, the monthly management fee, will terminate as at the Effective Time and in exchange, all empoloyees including the officers and key management personnel and consultants currently engaged by TEC and providing management services to Toscana pursuant to the terms of the Management Agreement will become employees and consultants of Toscana. The Transaction was approved by an independent committee of Toscana’s board of directors.
The Transaction is expected to provide Toscana with strategic and operational flexibility and is expected to be neutral to the Corporation’s general and administrative expenses.
About Toscana Energy Income Corporation
Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation.
For further information, please contact:
Joseph S. Durante, Chief Executive Officer
Tel: (403) 410-6793
Fax: (403) 444-0090
This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward‐looking statements or information. Forward‐looking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions.
More particularly and without limitation, this news release contains forward‐looking statements and information concerning the Effective Time of the Transaction, the benefits of the Transaction including the strategic and operational flexibility and the impact of the Transaction on the Corporation’s general and administrative expenses. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Corporation. Although management of the Corporation believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward‐looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions and failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. Accordingly, readers should not place undue reliance on the forward‐looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the TSX. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
SOURCE: Toscana Energy Income Corporation