Toscana Energy commences trading, enters into $17.5 million asset
acquisition and confirms October dividend
CALGARY,
Oct. 18, 2012 /CNW/ - Toscana
Energy Income Corporation ("Toscana Energy" or the "Company") (TSX
Venture: TEI) is pleased to announce that its acquisition of
Senmar Capital Corporation ("Senmar") has been completed and the
common shares in the capital of Toscana Energy have commenced
trading on the TSX Venture Exchange. This transaction
constituted Senmar's qualifying transaction under the policies of
the TSX Venture Exchange.
The Company is also pleased to announce that it has
entered into an agreement with a private company to acquire
approximately 750 BOEs/D of long life liquids rich natural gas
production for $17.5 million.
The production base is made up of approximately 23% natural gas
liquids with the balance being natural gas. Effective as at
December 31, 2011, Total Proved
Reserves in respect of the assets that are being acquired by
Toscana Energy has been estimated at 1,826,500 BOEs with total
Proved plus Probable Reserves in respect of such assets estimated
at 3,000,000 BOEs. This acquisition is subject to customary closing
conditions being satisfied and is scheduled to close prior to the
end of November 2012. It is
expected that the assets that are being acquired by Toscana Energy
will increase corporate production above 2,000 BOE/D and will be
financed through the Company's credit facilities.
The Company will continue with its current dividend
policy with the board of directors of Toscana Energy approving a
cash dividend of $0.135 per common
share in respect of October 2012
production (or the equivalent of $0.405 per common share on a quarterly basis) to
be paid on November 15, 2012 to
shareholders of record on October 31,
2012. The ex-dividend date is October 29, 2012. Once paid, total cash
dividends distributed by the Company to its shareholders during the
2012 calendar year will be approximately $1.60 per common share.
About Toscana Energy Income Corporation
Toscana Energy Income Corporation is a conventional oil and gas
producer with the mandate to acquire high quality, long life oil
and gas assets including royalties, non-operated working interests
and unitized production for yield and capital appreciation. Toscana
Energy Income Corporation is managed by Sprott Toscana through
Toscana Energy Corporation. Sprott Toscana is a member of the
Sprott Group of Companies.
About Sprott Toscana
Sprott Toscana (formerly Toscana Merchant Group) is a team of
Calgary-based energy specialists
that manage three separate businesses: Toscana Energy Income
Corporation (through Toscana Energy Corporation), Toscana Financial
Income Trust and Maple Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the
Sprott Group of Companies when it was acquired by Sprott Inc. (TSX:
SII), Canada's leading alternative
asset manager and a global leader in resource investing.
Forward-Looking Statements
This news release contains forward‐looking
statements and forward‐looking information within the meaning of
applicable securities laws. These statements relate to future
events or future performance. All statements other than
statements of historical fact may be forward‐looking statements or
information. Forward‐looking statements and information are
often, but not always, identified by the use of words such as
"appear", "seek", "anticipate", "plan", "continue", "estimate",
"approximate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe", "would" and similar expressions.
More particularly and without limitation, this
news release contains forward‐looking statements and information
concerning the expected results of the acquisition; the Company's
petroleum and natural gas production and reserves with respect to
the assets to be acquired; the Company's petroleum and natural gas
production on an aggregate basis upon completion of the
acquisition; anticipated closing dates of the asset acquisition;
the Company's dividend policy and business strategy. The
forward‐looking statements and information are based on certain key
expectations and assumptions made by the management of the Company,
including expectations and assumptions concerning well production
rates and reserve volumes in respect of the assets to be acquired;
expectations and assumptions concerning well production rates in
respect of existing wells and project development. Although
management of the Company believes that the expectations and
assumptions on which such forward looking statements and
information are based are reasonable, undue reliance should not be
placed on the forward‐looking statements and information since no
assurance can be given that they will prove to be correct.
Forward-looking statements and information are
provided for the purpose of providing information about the current
expectations and plans of management of the Company relating to the
future. Readers are cautioned that reliance on such statements and
information may not be appropriate for other purposes, such as
making investment decisions. 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 risks. These include, but are not
limited to, the risks associated with the oil and gas industry in
general such as 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 reserves, production, costs and expenses; health,
safety and environmental risks; commodity price and exchange rate
fluctuations, marketing and transportation, loss of markets,
environmental risks, competition, incorrect assessment of the value
of acquisitions, failure to realize the anticipated benefits of
acquisitions, ability to access sufficient capital from internal
and external sources, failure to obtain required regulatory and
other approvals and changes in legislation, including but not
limited to tax laws, royalties and environmental regulations.
Accordingly, readers should not place undue reliance on the
forward‐looking statements, timelines and information contained in
this news release. Readers are cautioned that the foregoing list of
factors is not exhaustive.
The forward‐looking statements and information
contained in this news release are made as of the date hereof and
no undertaking is given to update publicly or revise any
forward‐looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws or the TSX Venture Exchange. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary
statement
BOEs may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead.
This press release shall not constitute an offer to
sell, nor the solicitation of an offer to buy, any securities in
the United States, nor shall there
be any sale of securities mentioned in this press release in any
state in the United States in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
Neither the 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 Toscana Energy Income Corporation