Probe Announces Successful Conclusion of Chapter 11 Proceedings, Appointment of New Board Members, Hiring of New Executive Team,
April 19 2011 - 9:00AM
Marketwired
Probe Resources Ltd. (the "Company" or "Probe") (TSX VENTURE: PBR)
announces that pursuant to the order approving confirmation of its
Joint Chapter 11 Plan and the occurrence of the Plan's Effective
Date, the Company emerged from its Chapter 11 bankruptcy filing
effective April 15, 2011.
In conjunction with the conclusion of its Chapter 11
proceedings, the Company has realigned the Board of Directors of
the Company (the "Board"). The Board will be comprised of Mr. Paul
Crilly (Chairman), Mr. David Heden, Mr. Bill Gray, Mr. Richard
Buski and Mr. David Elgie.
In addition, the Board has appointed a new executive team headed
by Mr. David Elgie as President and Chief Executive Officer and Mr.
John Boylan as Chief Financial Officer. Mr. Elgie, a Chemical
Engineer from the University of British Columbia has 30 years of
oil and gas exploration and production experience in North America,
recently as CEO of Cordero Energy, a TSX traded exploration and
production company he founded in 2005. Mr. Boylan has 16 years of
experience in the finance and management of oil and gas assets. He
has served as a financial consultant for companies operating in the
Gulf of Mexico since 2008. He has public company experience serving
on boards of two listed companies, received his MBA from New York
University and his BBA from The University of Texas.
The Company will now move expeditiously to complete the
necessary financial and regulatory filings to re-list on the TSX
Venture Exchange. As a result of the debt restructuring plan, K2
Principal Fund LP and certain other creditors have agreed to a
conversion of some of their debt holdings in the Company to common
shares.
The Board has also endorsed a monthly contracting arrangement
with Pisces Energy LLC of New Orleans, Louisiana ("Pisces") whereby
Pisces will supply the operational, regulatory and accounting
requirements for the Company. This will substantially reduce the
Company's overhead costs in the near term and permit the executive
team to focus on growth opportunities.
The Company is currently producing approximately 300 barrels oil
equivalent from three platforms on the continental shelf in the
Gulf of Mexico. Production is primarily natural gas. A review is
being undertaken to prioritize the Company's numerous exploration
and exploitation opportunities, and plans are currently underway to
conduct a completion of an existing wellbore at East Cameron 246.
This well, drilled in 2009, has an estimated initial production
rate of 6.0 mmscf/d and proved plus probable reserves of 6.6 bcf
net to the Company.
The Board would also like to announce the conclusion of the
engagement of Coy Gallatin, Senior Vice-President of Energy
Spectrum Advisers Inc. and the Chief Restructuring Officer of
Probe, and thank him for his tireless service to the Company during
these proceedings.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Company's securities in
the United States. The Company's securities have not been and will
not be registered under the United States Securities Act of 1933,
as amended (the "US Securities Act) or any state securities laws
and may not be offered or sold within the United States or to U.S.
persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Statements in this press release may contain forward-looking
information which is subject to important risks and uncertainties,
such forward-looking information includes expectations of future
operations (including drill rig commitments and use of proceeds),
commerciality of any hydrocarbon discovered, production rates,
operating costs, commodity prices, administrative costs, commodity
price risk, management activity, acquisitions and dispositions,
capital spending, access to credit facilities, income and oil
taxes, regulatory changes, relisting on the TSX Venture Exchange
and other components of cash flow and earnings. The reader is
cautioned that assumptions used in the preparation of such
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, a
result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company.
These risks include, but are not limited to, the risks associated
with the oil and gas industry, commodity prices, and exchange rate
changes. Industry related risks could include, but are not limited
to, operational risks in exploration, development and production,
delays or changes in plans, risks associated with the uncertainty
of reserve estimates, or reservoir performance, health and safety
risks and the uncertainty of estimates and projections of
production, costs and expenses. The reader is cautioned not to
place undue reliance on this forward-looking information. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
The TSX Venture Exchange (or its Regulation Services Provider as
that term is defined in the policies of the TSX Venture Exchange)
have not reviewed and do not accept responsibility for the adequacy
or accuracy of this release.
Contacts: Probe Resources Ltd. Mr. John Boylan Chief Financial
Officer 504-830-7641 jboylan@probe-resources.com
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