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Laricina Energy Ltd. (“Laricina” or the “Company”) announces today it was granted a final court order from the Court of Queen’s Bench of Alberta, Judicial Centre of Calgary (the “Court”) on January 28, 2016 exiting from protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) concluding the stay of proceeding against the Company and its subsidiaries effective upon the filing of a certificate by the Court appointed monitor under the CCAA which occurred February 1, 2016. The Company has paid in full all accounts in respect of its CCAA proceedings and has set aside a reserve of $1.8 million to pay the remaining unpaid proven claims and outstanding disputed claim. Resolution of the disputed claim will continue on a timetable set by the parties or the Court.
Pursuant to the terms of the settlement agreement, as amended, entered into July 20, 2015 (the “Settlement Agreement”) with CPPIB Credit Investments Inc. (“CPP Credit”) to settle the secured debt obligations owing to CPP Credit (the “Settlement Transaction”) which was completed on November 30, 2015, Laricina entered into a board participation agreement pursuant to which, upon Laricina exiting from CCAA protection or at such time as Laricina and CPP Credit may agree, the Laricina board of directors shall consist of five directors. Currently CPP Credit has the right to select three representatives of the five member board. Laricina expects the changes to board membership to occur later this week.
Subject to any revisions to the ongoing business plan by the new board of directors once it is in place, Laricina is proceeding with very limited operations under a revised scaled-back business plan as previously communicated to shareholders with a view to maximizing long term value for its shareholders.
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. Our current focus is on the Company’s two core 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. 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. 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:
Marla Van Gelder
Vice President Corporate Development
Laricina Energy Ltd.
East Tower, 5th Ave Place
800, 425 1st Street SW
Calgary, AB. T2P 3L8