CALGARY, AB, Oct. 26, 2020 /CNW/ - Highwood Oil Company Ltd.
("Highwood" or the "Company") (TSXV: HOCL) today announces that its
Board of Directors has initiated a process to identify, examine and
consider strategic and financial alternatives available to the
Company with the ultimate view of enhancing shareholder value.
Strategic Review
Strategic and financial alternatives may include, but are not
limited to, the sale of the Company, investment in, merger or other
business combination, recapitalization, sale of all or a portion of
the Company's assets, or any combination thereof, continued
execution of its business plan, among all other alternatives (the
"Strategic Review"). The Board of Directors has established a
Special Committee comprised of independent directors to oversee the
process and National Bank Financial Inc. have been retained to
assist the Special Committee and the Company with the Strategic
Review.
It is the Company's current intention not to disclose
developments with respect to the Strategic Review process until the
Board of Directors has approved a specific transaction or otherwise
determines that disclosure is necessary or appropriate. Highwood
will continue to provide normal course quarterly financial and
material operational updates. The Company cautions that there
are no assurances or guarantees that the process will result in a
transaction or, if a transaction is undertaken, the terms or timing
of such a transaction.
Operational Update
Effective October 16, 2020, the
Company relinquished operatorship with respect to the joint venture
lands in the Clearwater play area
of Alberta to the 50% joint
venture partner. The joint venture partner anticipates employing
significant capital in the near future which will further delineate
lands and grow the production in Clearwater. The Company continues to have its
land position delineated by offset operators who are also showing
success with secondary recovery method pilot projects.
Current production in the Clearwater assets is approximately 1,000
bbls/d net to Highwood.
The Company has also restored the majority of production in the
Red Earth area with total Company current production levels of
approximately 2,000 bbls/d net for Highwood.
Advisory
This news release contains certain "forward-looking
information" within the meaning of such statements under applicable
securities law including estimates as to: future production,
operations, operating costs, commodity prices, administrative
costs, commodity price risk management activity, acquisitions and
dispositions, capital spending, access to credit facilities and
lending costs, income and oil taxes, regulatory changes, and other
components of cash flow and earnings anticipated discovery of
commercial volumes of bitumen, the timeline for the achievement of
anticipated exploration, anticipated results from drilling
programs, workovers and the potential results of the strategic
alternative review process and enhancement of shareholder value,
disclosure intentions with respect to the strategic alternative
review process, and general economic outlook.
Forward-looking information is frequently characterized by
words such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "may", "will", "potential", "proposed"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. These statements are only
predictions. Forward-looking information is 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 projected in the forward-looking statements.
These factors include, but are not limited to the inherent risks
involved in the exploration and development of oil and gas
properties and of properties, strategic alternatives, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating oil prices and discounts, the
possibility of unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the
future and other factors including unforeseen delays. As an oil and
gas enterprise in the development stage, Highwood Oil Company Ltd.
faces risks including those associated with exploration,
development, approvals and the continuing ability to access
sufficient capital from external sources if required. Actual
timelines associated may vary from those anticipated in this news
release and such variations may be material. Industry related risks
could include, but are not limited to, operational risks in
exploration, development and production, delays or changes in
plans, risks associated to the uncertainty of reserve estimates,
health and safety risks and the uncertainty of estimates and
projections of production, costs and expenses. For a description of
the risks and uncertainties facing Highwood Oil Company Ltd. and
its business and affairs, readers should refer to Highwood Oil
Company Ltd.'s most recent Annual Information Form. Highwood Oil
Company Ltd. undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change, unless required by law.
The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with
certainty as the factors are interdependent, and the Board's and
management's future course of action would depend on its assessment
of all information at the time.
The reader is cautioned not to place undue reliance on this
forward-looking information.
SOURCE Highwood Oil Company Ltd.