TSX Venture Exchange: IKM-V
CALGARY, Oct. 11, 2018 /CNW/ - Ikkuma Resources Corp.
("Ikkuma" or the "Corporation") is pleased to provide
an update on its recent activity.
Ikkuma is pleased to announce that on October 9, 2018 it closed a conveyance and sale
agreement for the sale of a non-core dormant midstream facility in
the Alberta foothills (the
"Midstream Facility Sale") to an undisclosed purchaser for a
total consideration of $2.0 million,
subject to customary adjustments.
As previously announced on July 5,
2018, Ikkuma entered into a purchase and sale agreement to
sell certain midstream assets in the Alberta foothills (the "Infrastructure
Asset Sale") for a total consideration of $23 million. The Infrastructure Asset Sale, which
was expected to close on or before September
30, 2018, is currently under review in conjunction with
Ikkuma's proposed business combination (the "Business
Combination") with Pieridae Energy Limited as announced on
August 24, 2018. In addition, the
Corporation's previously announced non-core natural gas divestiture
program through a public process with GMP FirstEnergy has been
terminated.
Proceeds from the Midstream Facility Sale were used to reduce
bank debt. On October 9, 2018, the
Corporation entered into an agreement to further amend its amended
and restated syndicated credit agreement, whereby the borrowing
base of the credit facility established thereunder (the
"Facility") was maintained at $25
million, of which $13 million
is currently available at the full discretion of the
Corporation. As at September 30,
2018, approximately $4 million
was drawn on the Facility. The Facility is subject to a semi-annual
review by October 31, 2018.
The foregoing restriction on the Facility prevents available
bank debt from being used for the Corporation's flow-through
program of $12 million that is
required to be spent by December 31,
2018. Alternative sources of financing have been considered
and are expected to be reviewed and announced on or about
November 1, 2018. The focus of the
flow-through program will be on drilling locations associated with
the Corporation's Central Alberta
foothills asset acquisition that was completed in the fourth
quarter of 2017.
A Management Information Circular and Proxy Statement with
respect to the Business Combination is expected to be mailed to
Ikkuma shareholders on or before October 22,
2018 with a special meeting of shareholders scheduled to be
held on November 19, 2018.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified growth-oriented public
oil and gas company listed on the TSX Venture Exchange under the
symbol "IKM", with holdings in both conventional and unconventional
projects in Western Canada. The
Corporation is focused in the Foothills Region of Western Canada with a team that has extensive
experience in the area with the unique skills at successfully
exploiting a complex and potentially prolific play type. Corporate
information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
statements or information. In particular, this press release
contains forward-looking statements and information relating to the
results of the review of the Infrastructure Asset Sale, the
completion of the semi-annual review of the Facility, the
Corporation obtaining alternative sources of financing on or about
November 1, 2018, the timing of the
mailing of the Management Information Circular and Proxy Statement
and the special meeting of Ikkuma shareholders, the focus of the
flow-through program and the completion of the Business
Combination. Although Ikkuma believes that the expectations and
assumptions on which the forward-looking statements and information
are based are reasonable, undue reliance should not be placed on
the forward-looking statements and information because Ikkuma
cannot give any assurance that they will prove to be correct.
The forward-looking statements and information is based on certain
key expectations and assumptions made by management, including
expectations and assumptions concerning: the satisfaction of all
conditions to the closing of the Infrastructure Asset Sale and on
the time frames contemplated; the Corporation's ability to fund its
flow-through obligations, successful bidding, negotiation of terms
and timing of review in connection with its additional noncore
production and infrastructure assets; prevailing and future
commodity prices, exchange rate, interest rates, inflation rates,
applicable royalty rates and tax laws; future production rates and
estimates of operating costs; performance of existing and future
wells; reserves volumes; anticipated timing and results of capital
expenditures in carrying out planned activities; the state of the
economy and the exploration and production business; the regulatory
framework regarding royalties, taxes and environmental laws;
results of operations; performance; business prospectus and
opportunities. 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 risk. These include but are not limited
to the risks associated with the oil and gas industry in general
(e.g., 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 production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. We caution that the
foregoing list of risks and uncertainties is not exhaustive. The
recovery and reserve estimates contained in this press release are
estimates only and there is no guarantee that the estimated
reserves will be recovered.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward-looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither 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 Ikkuma Resources Corp.