TSX Venture Exchange: IKM-V
CALGARY, May 15, 2018 /CNW/ - Ikkuma Resources Corp.
("Ikkuma" or the "Corporation") is pleased to
announce the initial stage of its previously disclosed plan to
divest non-core infrastructure assets.
Ikkuma has entered into a non-binding letter of intent to sell
certain midstream assets for a purchase price of $30 million, subject to customary adjustments,
pending execution of a definitive purchase and sale agreement (the
"Proposed Disposition"). A purchase and sale agreement is
expected to be executed in the next 30 days. KES 7 Capital Inc. is
acting as a financial advisor to the Corporation in conjunction
with the Proposed Disposition. The Proposed Disposition is subject
to receipt of all board and regulatory approvals, including
approval by the TSX Venture Exchange.
Proceeds from the Proposed Disposition will be used to reduce
debt and to fund the Corporation's $12
million flow-through obligations. The focus of the
flow-through program will be on the Corporation's recently acquired
Central Alberta foothills assets
where the team at Ikkuma has had a significant amount of
success.
In addition to the Proposed Disposition, Ikkuma is pleased to
announce that it has engaged GMP FirstEnergy to sell non-core
production and additional infrastructure assets through a public
process. As previously disclosed in the Corporation's April 3, 2018 press release, Ikkuma estimates the
replacement value of its infrastructure at approximately
$600 million.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified growth-oriented public
oil and gas company listed on the TSX Venture Exchange under the
symbol "IKM", with holdings in both conventional and unconventional
projects in Western Canada. The
Company is focused in the Foothills Region of Western Canada with a team that has extensive
experience in the area with the unique skills at successfully
exploiting a complex and potentially prolific play type. Corporate
information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information
This press release contains forward‑looking statements and
forward‑looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward‑looking
statements or information. In particular the press release
contains forward-looking statements and information relating to
completion of the Proposed Disposition, including the execution of
a definitive purchase and sale agreement; the use of proceeds of
the Proposed Disposition, including the expected focus of the
Corporation's capital expenditure program for 2018; and additional
potential sale of non-core production and infrastructure assets
through a public process. Although Ikkuma believes that the
expectations and assumptions on which the forward‑looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward‑looking statements and
information because Ikkuma cannot give any assurance that they will
prove to be correct. The forward-looking statements
and information is based on certain key expectations and
assumptions made by management, including expectations and
assumptions concerning: the negotiation and execution of a
definitive purchase and sale agreement in connection with the
Proposed Disposition; the satisfaction of all conditions to the
closing of the Proposed Disposition and on the time frames
contemplated; the Corporation's ability to fund its flow-through
obligations, successful bidding and negotiation of terms in
connection with its additional noncore production and
infrastructure assets; prevailing and future commodity prices,
exchange rate, interest rates, inflation rates, applicable royalty
rates and tax laws; future production rates and estimates of
operating costs; performance of existing and future wells; reserves
volumes; anticipated timing and results of capital expenditures in
carrying out planned activities; the state of the economy and the
exploration and production business; the regulatory framework
regarding royalties, taxes and environmental laws; results of
operations; performance; business prospectus and opportunities.
Since forward‑looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risk. These include but are not limited to the
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. We caution that the
foregoing list of risks and uncertainties is not exhaustive. The
recovery and reserve estimates contained in this press release are
estimates only and there is no guarantee that the estimated
reserves will be recovered.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward‑looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Ikkuma Resources Corp.