CALGARY, ALBERTA – December 30, 2015 – Anterra Energy Inc. (“Anterra” or the “Company”) (TSX-V: AE.A) announces that it has signed a purchase and sale agreement dated December 22, 2015 with Western Union Petro (Canada) Technology Co. Ltd. (“Western Union”), a subsidiary of LandOcean Energy Services Co. Ltd. The agreement provides that amounts owed by Anterra to Western Union (approximately $3.2 million) are extinguished in exchange for Anterra transferring its interests in three properties to Western Union.
The interests to be transferred to Western Union are located at Two Creek and Sakwatamau in Alberta, and at Abbott, Saskatchewan. The Two Creek property is currently operating at a loss due to low oil prices. Neither the Sakwatamau nor Abbott properties currently have production, and are expected to require significant investment to develop the properties. In addition, decommissioning liabilities associated with the properties are estimated at $3.8 million. Management is of the opinion the $3.2 million of debt so extinguished equates to the fair value of the properties being transferred.
The proposed transaction is subject to receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange (“TSX-V), receipt of lender consent and receipt of shareholder consent.
Western Union is based in Calgary and is wholly owned by LandOcean Energy Services Co. Ltd., a Beijing-based international oilfield services company, listed on the Shenzhen market under the code 300157. LandOcean Energy Services Co. Ltd. is also the parent of a significant shareholder of Anterra, (LandOcean Resources Investment Canada Co. Ltd., which holds approximately 22% of Anterra’s issued and outstanding shares). While the proposed transaction is subject to the requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, it is expected that exemptions from the formal valuation and minority approval requirements are available to Anterra.
About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with operations in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol “AE.A”. Additional information is available on the Company’s website at www.anterraenergy.com.
For further information, please contact:
|Dr. Gang Fang||Norm Knecht CA|
|Chairman and Chief Executive Officer||Vice President Finance and CFO|
|Telephone: (403) 215-2383||Telephone: (403) 215-3286|
|Facsimile: (403) 261-6601||Facsimile: (403) 261-6601|
|E-mail: email@example.com||E-mail: firstname.lastname@example.org|
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 News Release.
Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. In particular, forward-looking statements in this News Release include statements relating to the proposed transaction. Anterra has provided the forward-looking information in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the necessary government, regulatory, board, shareholder and other third party approvals; the ability of Anterra and Western Union to satisfy, in a timely manner, the other conditions to the proposed transaction; and expectations and assumptions concerning, among other things: commodity prices and interest rates, planned synergies, capital efficiencies and cost-savings, and the availability and cost of labour and services. There can be no assurance that the proposed transaction will proceed on the basis set out above or at all.Filed under: 2015