NYSE Amex: BQI
CALGARY,
March 1, 2012 /PRNewswire/ - Oilsands
Quest Inc. (NYSE Amex: BQI) ("Oilsands Quest" or "the Company") is
continuing to work to restructure its affairs while under the
protection of the Companies' Creditors Arrangement Act
(Canada) ("CCAA"), with the
assistance of a Monitor appointed by the Alberta Court of Queen's Bench (the "Court").
With the approval and support of the Monitor, Oilsands Quest has
extended the deadline for offers under its current Solicitation
Process. As well, the Company is working to reopen the sale process
for the non-core Eagles Nest asset, following a default on the
agreed deposit by the purchaser. Finally, Oilsands Quest has been
granted an extension until May 18,
2012 to regain compliance with the listing standards of the
NYSE Amex.
Oilsands Quest is currently conducting a Court-approved process
to solicit offers to acquire, restructure or recapitalize the
Company (the "Solicitation Process"), assisted by its financial
advisor, TD Securities Inc. Binding offers under this process were
originally due in March 2012. Several
confidentiality agreements have now been signed with interested
parties. Given the interest in the data room and the time required
for potential purchasers to conduct their due diligence, Oilsands
Quest is extending the deadline for offers under the process to
April 27, 2012.
In a development unrelated to the Solicitation Process, Oilsands
Quest is working with the Monitor to reopen the sale process for
its Eagles Nest asset. As previously announced, FAMA Capital Ltd.
("FAMA") had signed a Purchase and Sale Agreement, approved by the
Court, to buy the asset for CDN$7.0
million, with a deposit of CDN$400,000 due February
24, 2012. However, FAMA did not make the deposit and the
agreement was terminated. The details of the new sale process are
still being finalized.
Further to previous disclosure, Oilsands Quest received notice
on February 24, 2012 from the staff
of the NYSE Amex LLC (the "Exchange") that the Company remains out
of compliance with certain of the Exchange's continued listing
standards as set forth in Part 10 of the Exchange's Company Guide.
Specifically, the Exchange noted that the Company is not in
compliance with Section 1003(a)(iv) of the Company Guide because
the Company has sustained losses which are so substantial in
relation to the Company's overall operations or its existing
financial resources, or its financial condition has become so
impaired that it appears questionable, in the opinion of the
Exchange, as to whether the Company will be able to continue
operations and/or meet its obligations as they mature.
The Company was afforded the opportunity to submit a plan of
compliance to the Exchange and on February
14, 2012 presented its most recent plan to the Exchange. In
its letter of February 24, 2012, the
Exchange notified Oilsands Quest that it accepted the Company's
plan of compliance and granted the Company an extension until
May 18, 2012 to regain compliance
with the continued listing standards. The Company will be subject
to periodic review by Exchange Staff during the extension period.
Failure to make progress consistent with the plan or to regain
compliance with the continued listing standards by the end of the
extension period could result in the Company being delisted from
the NYSE Amex.
Trading in the common shares of Oilsands Quest remains suspended
while the NYSE Amex determines whether to resume trading or to
delist the Company for failure to meet listing requirements.
About Oilsands Quest
Oilsands Quest Inc. (www.oilsandsquest.com) is exploring and
developing oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands
discovery.
Forward-looking statements
This news release includes certain statements that may be deemed
to be "forward-looking statements." All statements, other than
statements of historical facts, included in this news release that
address activities, events or developments that management expects,
believes or anticipates will or may occur in the future are
forward-looking statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or
"could" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, which include but are not limited to the ability to
raise additional capital, risks associated with the Company's
ability to implement its business plan, its ability to successfully
submit a timely plan to its stakeholders and the court under the
CCAA and to resolve its operational, legal and financial
difficulties, the possible delisting of its securities from NYSE
Amex, risks inherent in the oil sands industry, regulatory and
economic risks, land tenure risks and those factors listed under
the caption "Risk Factors" in the Company's Form 10-Q filed with
the Securities and Exchange Commission on December 9, 2011. The Company undertakes no
obligation to update forward-looking information if circumstances
or management's estimates or opinions should change, except as
required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
SOURCE Oilsands Quest Inc.