CALGARY, Alberta, Feb. 06, 2018 (GLOBE NEWSWIRE) -- Toscana Energy Income Corporation ("Toscana Energy" or the "Company") (TSX:TEI) is pleased to announce that it has entered into a Purchase and Sale Agreement to sell a portion of its non-core, non-operated natural gas weighted assets in West Central Alberta (the “Assets”) to a private company for total cash consideration of $4.75 million subject to normal industry conditions. These assets have current net production of approximately 200 boe/d (75% gas). Proceeds of this sale will be initially utilized to reduce the Company’s outstanding credit facilities and then redirected towards expanding its large light oil in place assets. The disposition of the Assets is expected to close on or before the end of February, 2018. Together with this sale, Toscana Energy will have executed on an aggregate of $10.4 million of non-core property sales in the preceding twelve months, to not only reduce debt but also to improve the overall quality of its asset portfolio. Following the closing of the disposition of the Assets, the Corporation is expected have approximately $10 million available on its credit facilities.
About Toscana Energy Income Corporation
Toscana Energy 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. Toscana Energy is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.
For further information, please visit our website at www.sprott-toscana.com or contact:
|Joseph S. Durante, Chief Executive Officer|
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 anticipated closing date of the disposition of the Assets and the use of proceeds from the disposition of the Assets. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company, including expectations and assumptions concerning applicable post-closing adjustments in relation to the disposition; production of the Company’s oil and natural gas interests; and general business, economic and market conditions. Although management of the Company 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 Company 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 risk that the disposition of the Assets will not be completed on the terms anticipated or at all; general business, economic and market conditions; the risks associated with the oil and gas industry in general; incorrect assessment of the value of the disposition and failure to realize the anticipated benefits of the disposition of the Assets; 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 Toronto Stock Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
Source: Toscana Energy Income Corporation