CALGARY,
Feb. 26, 2013 /CNW/ - Toscana
Energy Income Corporation ("Toscana Energy" or the "Company") (TSX
Venture: TEI) is pleased to announce that it has entered into
an agreement with a private company to acquire long life, low
decline, light oil (44◦API gravity crude oil) assets
that produce approximately 200 barrels of oil per day and are
located in northwestern Alberta
(the "Assets"). National Bank Financial Inc. acted as the
financial advisor to the vendor of the Assets. As
consideration for the acquisition of the Assets, Toscana Energy has
agreed to pay total aggregate consideration of $12.0 million to be satisfied by paying cash
consideration of $11.5 million and
issuing an aggregate of 31,250 common shares in the capital of the
Company, such common shares to be subject to a statutory hold
period of four months plus one day from the date of issuance.
The acquisition of the Assets will be financed through the
Company's current credit facilities and is subject to customary
closing conditions being satisfied, including receipt of the
approval of the TSX Venture Exchange. It is expected that the
acquisition of the Assets will increase corporate production to
approximately 2,600 BOEs/d, which will change the product mix of
the Company to a greater share of light oil production.
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; the
Company's petroleum and natural gas production and reserves with
respect to the assets to be acquired and the Company's petroleum
and natural gas production on an aggregate basis upon completion 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 well production rates and reserve volumes in respect of
the assets to be acquired; expectations and assumptions concerning
well production rates in respect of existing wells; project
development and overall business strategy. 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: 1bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead.
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