CALGARY, July 20, 2018 /CNW/ - (TSX: EGL): Further
to Eagle Energy Inc.'s ("Eagle") previously announced
strategy of reducing debt and interest charges, Eagle is pleased to
announce it has signed an agreement to sell its entire interest in
its oil and natural gas properties near Twining, Alberta to a third party for cash
consideration of $13,820,000 before
customary post-closing adjustments (the "Sale"). The Sale is
expected to close on or about August 28,
2018, subject to customary closing conditions.
Eagle intends to use the net proceeds from the Sale to reduce
outstanding debt under its secured term loan and to further fund
its North Texas development
program. The Sale is expected to reduce leverage, increase
corporate netback per barrel of oil equivalent and lower its
corporate decline rate.
Eagle's management and the board of directors arrived at this
decision through a competitive sale process and after carefully
considering the advice of Tudor Pickering Holt & Co. Securities
– Canada, ULC
("TPH"). TPH is an independent investment bank with
extensive financial and technical knowledge of the energy
sector.
About Eagle Energy Inc.
Eagle is an oil and gas corporation with shares listed for
trading on the Toronto Stock Exchange under the symbol "EGL".
All material information about Eagle may be found on its website
at www.EagleEnergy.com or under Eagle's issuer profile at
www.sedar.com.
Advisories
Note about Forward-Looking Statements
Certain of the statements made and information contained in this
news release are forward-looking statements and forward-looking
information (collectively referred to as "forward-looking
statements") within the meaning of Canadian securities
laws. All statements other than statements of historic fact
are forward-looking statements. Eagle cautions investors that
important factors could cause Eagle's actual results to differ
materially from those projected, or set out, in any forward-looking
statements included in this news release.
In particular, and without limitation, this news release
contains forward-looking statements pertaining to the closing of
the Sale, Eagle's intention to use the net proceeds from the Sale
to reduce outstanding debt under Eagle's secured term loan and to
further fund its North Texas
development program, and Eagle's expectation that the Sale will
reduce leverage, increase corporate netback per barrel of oil
equivalent and lower its corporate decline rate.
With respect to forward-looking statements contained in this
news release, assumptions have been made regarding, among other
things: future crude oil, NGL and natural gas prices, differentials
and weighting; future foreign exchange rates; future production
levels; future recoverability of reserves; future capital
expenditures and the ability of Eagle to obtain financing or
refinancing on acceptable terms for its capital projects,
operations and future acquisitions; future production estimates,
which are based on the proposed drilling program with a success
rate that, in turn, is based upon historical drilling success and
an evaluation of the particular wells to be drilled, among other
things; and estimated future costs, which are based on historical
information and anticipated changes of the cost of equipment and
services, among other things.
Eagle's actual results could differ materially from those
anticipated in these forward-looking statements as a result of the
risk factors set forth below and those in Eagle's Annual
Information Form ("AIF") dated March
20, 2018 for the year ended December
31, 2017, which is available on Eagle's website at
www.EagleEnergy.com and on SEDAR at www.sedar.com: the
volatility of crude oil, NGL, and natural gas prices; commodity
supply and demand; fluctuations in foreign exchange and interest
rates; inherent risks and changes in costs associated in the
development of petroleum properties; ultimate recoverability of
reserves; timing, results and costs of drilling and production
activities; availability of financing and capital; and new
regulations and legislation that apply to Eagle and the operations
of its subsidiaries. Additional risks and uncertainties
affecting Eagle are contained in the AIF under the heading "Risk
Factors".
As a result of these risks, the closing of the Sale, proposed
use of the net proceeds from the Sale and impact on Eagle's
leverage, corporate netback and corporate decline rate may differ
materially from any projections of future performance or results
expressed or implied by these forward‐looking statements. Eagle's
projections of future performance or results are subject to change
in light of ongoing results, prevailing economic circumstances,
obtaining regulatory approvals, obtaining financing, commodity
prices and industry conditions and regulations. New factors emerge
from time to time, and it is not possible for management to predict
all of these factors or to assess, in advance, the impact of each
such factor on Eagle's business, or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statement.
Undue reliance should not be placed on forward-looking
statements, which are inherently uncertain, are based on estimates
and assumptions, and are subject to known and unknown risks and
uncertainties (both general and specific) that contribute to the
possibility that the future events or circumstances contemplated by
the forward-looking statements will not occur. Although
management believes that the expectations conveyed by the
forward-looking statements are reasonable based on information
available to it on the date the forward-looking statements were
made, there can be no assurance that the plans, intentions or
expectations upon which forward-looking statements are based will
in fact be realized. Actual results will differ, and the difference
may be material and adverse to Eagle and its shareholders. Eagle
does not undertake any obligation, except as required by applicable
securities legislation, to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE Eagle Energy Inc.