/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
CALGARY,
July 16, 2013 /CNW/ - Toscana
Energy Income Corporation ("Toscana Energy" or the "Company") (TSX
Venture: TEI) is pleased to announce that it has entered into a
pre-acquisition agreement with a private company, Veredus Resources
Ltd. (the "Vendor"), to acquire approximately 100 BOEs/d
(approximately 90% light oil) in the Company's core southern
Alberta operating area through the
acquisition by the Company of all the issued and outstanding common
shares of the Vendor (the "Acquisition"). As
consideration for all of the issued and outstanding common shares
of the Vendor, Toscana Energy has agreed to issue an aggregate of
approximately 233,073 common shares in the capital of the Company
to the shareholders of the Vendor. The Acquisition is subject to
customary closing conditions being satisfied, including receipt of
the approval of the TSX Venture Exchange, and is scheduled to close
on July 31, 2013. The
Acquisition has been unanimously approved by the board of directors
of Toscana Energy. One of the directors of Toscana Energy,
who is also a director of the Vendor, has abstained from voting on
the Acquisition to the extent required by applicable law.
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. Toscana Energy Income Corporation is
managed by Sprott Toscana through Toscana Energy Corporation.
Sprott Toscana is a member of the Sprott Group of Companies.
About Sprott Toscana
Sprott Toscana (formerly Toscana Merchant Group)
is a team of Calgary-based energy
specialists that manage three separate businesses: Toscana Energy
Income Corporation (through Toscana Energy Corporation), Toscana
Financial Income Trust and Maple Leaf Energy Income LPs. In
July 2012, Toscana Merchant Group
joined the Sprott Group of Companies when it was acquired by Sprott
Inc. (TSX: SII), Canada's leading
alternative asset manager and a global leader in resource
investing.
Forward-Looking Statements
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 expected results of the Acquisition and
the anticipated closing date of the Acquisition. 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 overall business
strategy and that all of the conditional to the Acquisition are
satisfied or waived. 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 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 Venture Exchange. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary
statement
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.
This press release shall not constitute an offer
to sell, nor the solicitation of an offer to buy, any securities in
the United States, nor shall there
be any sale of securities mentioned in this press release in any
state in the United States in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
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 Toscana Energy Income Corporation