(TSX: AAV)
CALGARY,
AB, Nov. 2, 2022 /CNW/ - Advantage Energy Ltd.
("Advantage" or the "Corporation") announces that the Board of
Directors has authorized the initiation of a substantial issuer bid
(the "Offer") pursuant to which the Corporation intends to offer to
purchase for cancellation up to $100,000,000 of its common shares (the "Shares").
The Corporation anticipates that the terms and pricing will
be determined, and the Offer will commence, during the next two
weeks and will be completed before the end of December 2022.
This news release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell Shares. The Offer referred to in this news release has
not yet commenced. The solicitation and the offer to buy the
Shares will only be made pursuant to a separate issuer bid
circular, which will contain full details of the Offer and will be
filed with the securities regulatory authorities in Canada and mailed to the Corporation's
shareholders. Shareholders wishing to accept the Offer will
have the opportunity to tender their Shares through a modified
Dutch auction. The Offer will be optional for all
shareholders, who will be free to choose whether to participate,
how many Shares to tender and, in the case of auction tenders, at
what price to tender within the specified range. Any
shareholder who does not deposit any Shares (or whose Shares are
not repurchased under the Offer) will realize a proportionate
increase in equity interest in Advantage, to the extent that Shares
are purchased under the Offer. The Corporation intends to
fund the Offer with a combination of cash on hand and drawings on
existing credit facilities. The Offer, which remains subject
to the receipt of a satisfactory liquidity opinion from the
Corporation's financial adviser, will not be conditional upon any
minimum number of Shares being tendered and will be subject to
conditions customary for transactions of this nature.
Update on Initial Performance of
Entropy23TM
In order to ensure complete, up-to-date disclosure in advance of
Advantage's substantial issuer bid, Entropy Inc. ("Entropy", a
subsidiary of Advantage) is pleased to provide a status update on
Entropy23TM at the Glacier carbon capture and storage
project.
In its first week since being introduced into the Modular Carbon
CaptureTM system, Entropy23TM has begun
capturing carbon with frequent adjustments to operating
parameters. During a relatively steady 28-hour period using a
preliminary configuration, the system demonstrated a capture
efficiency of approximately 95% with an initial heat duty of 2.9
GJ/tonne; CO2 concentration of the flue gas was 5.3% and reboiler
temperature was 116 degrees Celsius. This data, which was
independently recorded and verified by researchers from the
University of Regina's Clean Energy
Technologies Research Institute, is consistent with management
expectations given the very short operating history and variations
in ambient temperature conditions.
As a result of Entropy23TM's high performance
properties, capture rates have exceeded expectations; the system
has not yet been configured to target a lower capture efficiency of
90%, which will be required prior to any relevant comparison to our
MEA benchmarks (which are anchored on 90% capture rates, please see
Entropy press release dated October 24,
2022).
The next steps are to configure the system to achieve steady 90%
capture rates for data gathering, optimize the heat duty and gather
long-term data on operating costs. This process is expected
to take several months and no material data is expected to be
generated prior to the end of December
2022, although further performance data may be released at
any time as it becomes available.
Advantage Energy Ltd.
2200, 440 -
2nd Avenue SW
Calgary, Alberta T2P 5E9
Phone: (403) 718-8000
Fax: (403) 718-8332
Web Site: www.advantageog.com
E-mail: ir@advantageog.com
Forward-Looking Information
and Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. These statements relate to future
events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "continue",
"demonstrate", "expect", "may", "can", "will", "believe", "would"
and similar expressions and include statements relating to, among
other things, references to the aggregate amount of Shares to be
purchased for cancellation under the Offer; the structure of the
bid including a modified Dutch auction procedure; the timing for
determining the terms and pricing of the Offer; the anticipated
timing of commencement and completion of the Offer; the
Corporation's intention to fund the Offer with a combination
of cash on hand and drawings on existing credit facilities; the
Offer not being conditional upon any minimum number of Shares being
tendered; the anticipated receipt by the Corporation of a
satisfactory liquidity opinion from the Corporation's financial
adviser; and the expectation that Entropy will continue with
process modifications in order to establish heat duty at
standardized capture rates and conditions and that further data
will be released as it becomes available. Advantage's actual
decisions, activities, results, performance or achievement could
differ materially from those expressed in, or implied by, such
forward-looking statements and accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do, what
benefits that Advantage will derive from them.
Forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties, some
that are similar to other oil and gas companies and some that are
unique to Advantage. Advantage's actual results may differ
materially from those expressed or implied by its forward-looking
statements and readers are cautioned not to place undue reliance on
them. Advantage undertakes no obligation to update any
forward-looking statements contained herein, except as required by
applicable law.
With respect to forward-looking statements contained in this
press release, Advantage has made assumptions regarding, but not
limited to: conditions in general economic and financial
markets; the impact and duration of ongoing global events,
including European tensions and the COVID-19 pandemic and the
ability of the Corporation to carry on its operations as currently
contemplated in light of the such events; effects of
regulation by governmental agencies; foreign exchange rates;
current and future commodity prices and royalty regimes; future
exchange rates; royalty rates; future operating costs; future
transportation costs and availability of product transportation
capacity; availability of skilled labor; the impact of
increasing competition; that the Corporation will have sufficient
cash flow, debt or equity sources or other financial resources
required to fund its capital and operating expenditures and
requirements as needed; that the Corporation will have cash on hand
and will be able to draw on its credit facilities to fund the
Offer; that Entropy's conduct and results of operations will be
consistent with expectations; and that Entropy will have the
ability to develop its technology in the manner currently
contemplated.
Management has included the above summary of assumptions and
risks related to forward-looking information above and in its
continuous disclosure filings on SEDAR in order to provide
shareholders with a more complete perspective on Advantage's future
operations and such information may not be appropriate for other
purposes. Advantage's actual results, performance or achievement
could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Advantage will derive there from. Readers are
cautioned that the foregoing lists of factors are not exhaustive.
These forward-looking statements are made as of the date of this
news release and Advantage disclaims any intent or obligation to
update publicly any forward-looking statements, whether as a result
of new information, future events or results or otherwise, other
than as required by applicable securities laws.
SOURCE Advantage Energy Ltd.