CALGARY, Alberta, June 14, 2018 (GLOBE NEWSWIRE) —  follow url essay shakespeare sonnets my college essay for lim racism in the merchant of venice essay viagra from gnc i have to do my homework formula do cialis diario get essays written for you free click abstract outline research paper click here follow site essays on philosophy of science enter essay on honesty is the best policy for class 9 go here literature review obesity research levitra mindenmines watch source link best assignment writing for hire ca viagra stamina rx Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX:TEI) is pleased to announce that it has sold its gas-weighted Gross Overriding Royalty Interests (the “Gas Assets”) to a private company for total cash consideration of $7.5 million, subject to customary industry adjustments, with an effective date of April 1, 2018. The Gas Assets have current net production of approximately 200 BOE/d (65% gas). Proceeds of the sale of the Gas Assets will be utilized to reduce the amounts drawn on the Corporation’s outstanding credit facilities.

Toscana also announced the renewal of its credit facilities.  Concurrent with the sale of the Gas Assets, the Corporation has agreed to certain amendments to its credit facilities which have been adjusted to $20 million. Toscana has been advised that such facilities will be increased to $25 million upon the successful acquisition of all of the outstanding securities of Cortona Energy Ltd. (“Cortona”) discussed further below. The credit facilities will have an interim review on December 31, 2018.

Toscana also announced that it is considering the potential acquisition of all of the outstanding securities of Cortona for cash, certain of which securities are owned by certain of the directors and officers of Toscana.  Toscana has expressed an interest to those shareholders of Cortona to acquire their shares along with making an offer to acquire the balance of the outstanding securities of Cortona in exchange for cash consideration.  Such shareholders of Cortona have indicated that they would be interested in selling their Cortona shares to Toscana subject to negotiating a definitive agreement on terms and conditions to be agreed to among the parties.  In considering such a transaction, the board of directors of Toscana (the “Toscana Board”) has established a special committee comprised of members of the Toscana Board who are independent of Cortona (the “Special Committee”) to evaluate and negotiate the terms of such transaction.

Cortona is considered a “related party” of Toscana under applicable securities laws as certain of the directors and officers of Toscana are also significant shareholders of Cortona.  Accordingly, the Special Committee, comprised of Martin Hislop and Brian Krausert will evaluate and negotiate any potential transaction on behalf of Toscana.  The Special Committee has retained its own legal counsel and financial advisor to assist it with fulfilling its mandate.

Any agreement reached among the parties in respect of a transaction will be subject to customary closing conditions for transactions of this nature including receipt of all necessary regulatory and shareholder approvals.  There can be no assurance that the parties will agree to conclude a transaction.

Benefits of the Transaction

  • The acquisition of Cortona, would consolidate Toscana’s large oil in place Carmangay Barons Oil Pool, adding approximately 250 BOEs/d of light oil production.
  • Additional benefits of the acquisition of Cortona would include:
    • Consolidate operatorship of the Carmangay Barons Oil Pool;
    • Toscana’s working interest in excess of 90% in the pool;
    • long life, low decline light oil reserves; and
    • current net combined production from the pool of approximately 450 BOEs/d.
  • Oil weighting of Toscana would increase from 36% to 42%.

Cortona Background

Cortona was originally formed in the spring of 2016 by certain of the officers and directors of Toscana to preserve for Toscana a strategic opportunity to consolidate the Corporation’s core Carmangay Barons Oil Pool in southern Alberta. As disclosed in a news release of the Corporation dated November 25, 2015, Toscana had an opportunity to acquire the assets that were subsequently acquired by Cortona, however, the collapse of oil prices that began in 2014 and the considerable tightening of the credit and equity markets that followed prevented Toscana from acquiring the Cortona assets at that time.

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

BOE Equivalency

Barrel of oil equivalents or BOEs 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 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 Mcf: 1 bbl, utilizing a conversion ratio of 6 Mcf: 1 bbl may be a misleading indication of value.

Forward-Looking Statements

This news release contains forwardlooking statements and forwardlooking 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 forwardlooking statements or information.  Forwardlooking 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 forwardlooking statements and information concerning the intended use of proceeds from the disposition of the Gas Assets; the next scheduled interim review of the Corporation’s credit facilities; the potential acquisition by the Corporation of all the outstanding securities of Cortona; and the anticipated benefits of the acquisition of Cortona and the ability of the Corporation to realize such advantages.  The forwardlooking 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 forwardlooking 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 forwardlooking 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 forwardlooking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forwardlooking 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 forwardlooking 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