Toscana Energy Announces Sale of Non-Core Properties
February 06 2018 - 06:52PM
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 |
Tel:Fax: |
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(403)
410-6793(403) 444-0090 |
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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 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