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Laricina Energy Ltd. and its wholly owned subsidiaries: Laricina GP Holding Ltd. and 1276158 Alberta Inc. (collectively “Laricina” or the “Company”), announced today that they have been granted a further order (the “Order”) by the Court of Queen’s Bench of Alberta, Judicial Centre of Calgary (the “Court”) to extend creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) until and including July 7, 2015.
On March 30, 2015 the Company was granted an initial order providing a stay of proceedings until and including April 24, 2015 (the “Initial Order”) after seeking protection under the CCAA following receipt of a Demand for Payment in full by March 26, 2015 from the sole noteholder (the “Lender”) of all amounts due under the terms of the trust indenture relating to $150 million of 11.5% senior secured notes issued in March of 2014.
With the stay of proceedings pursuant to the Order, the Company has sufficient liquidity, with estimated cash and cash equivalents of approximately $118.9 million, for the extended stay period which expires on July 7, 2015 and, which may be extended thereafter as the Court deems appropriate. During this time Laricina will consult with the Lender, an ad hoc committee of shareholders, and the Monitor regarding its intended restructuring process and matters related thereto.
In conjunction with the Initial Order, PricewaterhouseCoopers Inc. (“PwC”) was appointed by the Court as monitor under the CCAA proceedings (the “Monitor”). All of the materials filed with the Court, including the Initial Order, are available on the Monitor’s website (www.pwc.com/car-laricina). The Company’s operations are continuing uninterrupted during the Court-supervised restructuring process.
About Laricina Energy Ltd.
Laricina is a non-public, Calgary based, responsible energy company that will contribute supply to the growing demand for crude oil through in situ oil sands development.
Laricina’s goal is to create value by developing Canada’s oil sands using innovative in situ technologies. The Company has a diverse portfolio of oil sands assets at varied stages of development, and experienced people with the requisite technical expertise. Our current focus is on the Company’s two core producing projects – Saleski and Germain. Laricina’s asset base, holds 0.5 billion barrels of probable reserves, 3.9 billion barrels of contingent resources (best estimate) and 0.2 billion barrels of prospective resources (best estimate) as determined by Laricina’s independent reservoir engineers as at December 31, 2014 for Germain Grand Rapids, Germain Winterburn, Saleski Grosmont, Burnt Lakes, Conn Creek, Poplar Creek and Portage properties, and as at December 31, 2013 for Thornbury, Thornbury West, House River, Germain Wabiskaw and Boiler Rapids properties. These assets include oil sands resources in the familiar McMurray Formation, and the developing Grand Rapids, and Grosmont and Winterburn carbonate plays, all of which offer significant production potential.
This information release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law including but not limited to the potential results of a restructuring process and enhancement of shareholder value, disclosure intentions with respect to the strategic alternatives review process, and final regulatory approval from the Alberta Energy Regulator and Alberta Environment. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “estimate”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on Laricina’s experience and current beliefs as well as assumptions made by, and information currently available to, Laricina, and are subject to a variety of risks and uncertainties including, but not limited to, those associated with resource definition, unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future acquisitions and development. Laricina’s resources at Saleski and Burnt Lakes are contained in the Grosmont Formation, and a portion of Germain’s resources are contained in the Winterburn Formation, each a carbonate reservoir. Some of the Company’s contingent resources in the carbonates that are analogous to the Saleski pilot are based on established technologies that have been demonstrated to be commercially viable specifically for the subject reservoirs, and some are based on technology under development that require further development and piloting to confirm the commercial viability of applying these technologies to carbonate reservoirs. Resource volumes based on technology under development have a higher risk than volumes based on established technology. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the assumptions and factors discussed in this information release are not exhaustive and readers are not to place undue reliance on forward-looking statements. Laricina disclaims any intention or obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this message, except as required under applicable securities legislation. The forward-looking statements are expressly qualified by these cautionary statements.
For further information please visit www.laricinaenergy.com or contact:
Heidi Christensen Brown
Team Lead, Investor Relations & Communications
Laricina Energy Ltd.
East Tower, 5th Ave Place
800, 425 1st Street SW
Calgary, AB. T2P 3L8