CALGARY,
April 10, 2014 /CNW/ - Palliser
Oil & Gas Corporation ("Palliser" or the
"Company") (TSXV:PXL) announces that in light of operational
challenges and financial constraints facing the Company, the board
of directors of Palliser (the "Board") is conducting a
strategic review of the Company's business plan to identify
appropriate actions for the Company. The strategic review is
examining and considering the alternatives available to the Company
with a view to enhancing shareholder value. Management and
the Board are committed to acting in the best interests of the
Company and its shareholders.
Palliser has retained National Bank Financial
Inc. to act as its financial advisor in connection with the
strategic review.
Palliser does not intend to disclose developments
with respect to the strategic review unless and until the Board has
approved a change to the business plan or any particular
transaction or otherwise determines that disclosure is required or
appropriate. There can be no assurances or guarantees that
the strategic review will result in any change to the current
business plan or the pursuit of any alternative plan.
In the first quarter of 2014 average production
was approximately 1,850 boe/d and current production is in the
range of 1,800 to 1,900 boe/d. Palliser had a minimal capital
program of approximately $2 million
in the first quarter, primarily focused on maintenance capital and
lease preservation.
Year end financial statements are expected to be released on or
about April 29, 2014.
About Palliser
Palliser is a Calgary-based junior oil and gas company
focused on high netback heavy oil production in the greater
Lloydminster area of Alberta and Saskatchewan.
Forward-Looking Statements
Statements in this document may contain
forward-looking information including matters related to the
strategic review. The reader is cautioned that assumptions used in
the preparation of such information may prove to be incorrect.
Events or circumstances may cause actual results to differ
materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of the Company. These risks include, but are not
limited to: the risks associated with the oil and gas industry;
commodity prices, and; exchange rate changes. Industry related
risks could include, but are not limited to: operational risks in
exploration; proposed dispositions not being completed or if
completed, not providing the benefits expected; development and
production; delays or changes in plans; risks associated to the
uncertainty of reserve estimates; health and safety risks, and; the
uncertainty of estimates and projections of production, costs and
expenses. In addition, forward-looking statements or information
are based on a number of factors and assumptions which have been
used to develop such statements and information but which may prove
to be incorrect. Although the Company believes that the
expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements because the Company can give no
assurance that such expectations will prove to be correct. In
addition to other factors and assumptions which may be identified
herein, assumptions have been made regarding, among other things:
the ability of the Company to obtain financing on acceptable terms;
the impact of increasing competition; the general stability of the
economic and political environment in which the Company operates;
the timely receipt of any required regulatory approvals; the
ability of the Company to obtain qualified staff, equipment and
services in a timely and cost efficient manner; drilling results;
the ability of the operator of the projects which the Company has
an interest in to operate the field in a safe, efficient and
effective manner; field production rates and decline rates; the
ability to replace and expand reserves through acquisition,
development and exploration; the timing and costs of pipeline,
storage and facility construction and expansion and the ability of
the Company to secure adequate product transportation; future
commodity prices; currency, exchange and interest rates; the
regulatory framework regarding royalties, taxes and environmental
matters in the jurisdictions in which the Company operates; and the
ability of the Company to successfully market its oil and natural
gas products. Readers are cautioned that the foregoing lists of
factors and assumptions are not exhaustive. Additional information
on these and other factors that could affect the Company's
operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com), at the
Company's website (www.palliserogc.com). Furthermore,
the forward-looking statements contained in this news release are
made as at the date of this news release and the Company does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by applicable securities laws.
Conversion
The Company has adopted the industry standard
of 6:1 Mcf to Bbl when converting natural gas to barrels of oil
equivalent. Disclosure provided herein in respect of 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. Given that
the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy
equivalency of 6 Mcf:1 Bbl, utilizing a conversion ratio of 6:1 may
be misleading as an indication of value.
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 Press release.
SOURCE Palliser Oil & Gas Corporation