CALGARY,
Sept. 3, 2013 /CNW/ - Wrangler
West Energy Corp. ("Wrangler West", the
"Company") (TSX-V "WX") provides the following
corporate information updates.
Credit Facility
The Company announces an amendment to the Company's revolving
operating demand loan agreement ("Credit Facility")
effective September 3, 2013 with
Canadian Western Bank (the "lender") in the amount of
$4.9 million with a monthly reduction
of $100,000 beginning September 26, 2013 and a maturity date of
December 31, 2013. The amended Credit
Facility bears annual interest calculated at prime plus 2.5
percent. The amendment to the Credit Facility was approved by
Wrangler West's Board of Directors ("Board") and the Company
expects to use the Credit Facility to fund its ongoing operations
and working capital deficiency. The lender cancelled the
non-revolving acquisition/development demand loan portion of the
previous Credit Facility agreement.
Strategic Alternatives
The Company has initiated a process to identify, examine and
consider a range of strategic alternatives with a view to enhancing
shareholder value (the "process"). Strategic alternatives
may include, but are not limited to, a potential sale of all, or a
material portion of, the Company's assets; a joint venture, either
in one transaction or in a series of transactions; the outright
sale of the Company; or a merger or other strategic transaction
involving Wrangler West and a third party.
The Board believes the Company's shares trade at a discount to
the value of the underlying assets, especially given its
concentrated property and production base, prospective horizontal
light oil drilling inventory and significant tax pools. The Board
has established a Special Committee comprised of independent
directors of the Company to oversee the process and has retained
Sayer Energy Advisors to assist the Special Committee and the
Board.
Wrangler West does not intend to disclose developments with
respect to the process unless, and until, the Board has approved a
specific transaction or otherwise determines disclosure is
necessary in accordance with applicable law. The Company cautions
there are no assurances or guarantees the process will result in a
transaction; or, in the event a transaction is undertaken, there
are no assurances or guarantees regarding the terms or timing of
any such transaction nor the impact any potential transaction might
have on the Company's financial position. The Company has not set a
definitive schedule to complete the process. Subject to the outcome
of the process, the Company intends to continue to focus on
maintaining production operations.
Reader Advisory
This news release may contain forward-looking statements ("FLS")
related to potential new crude oil and natural gas drilling,
tie-ins, ongoing production operations, sources and use of capital,
asset purchases or dispositions, expected future operations and
possible strategic alternatives. Although Wrangler West believes
the expectations reflected in FLS are reasonable, undue reliance
should not be placed on FLS because the Company can give no
assurance they will prove correct. FLS address future events and
conditions and, by their very nature, involve inherent risks and
uncertainties. A more detailed discussion of FLS is provided in
Wrangler West's Management's Discussion and Analysis for the period
ended June 30, 2013 and the year
ended December 31, 2012 which is
filed on SEDAR (www.sedar.com). The FLS contained in this
news release are made as of the date hereof. Unless so
required by applicable securities laws, Wrangler West undertakes no
obligation to update publicly or revise any FLS or information,
whether as a result of new information, future events or
otherwise.
Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas
producer which explores for and develops natural gas and crude oil
production assets in the Province of Alberta. Since inception, the Company's
mandate has been to use the drill bit to add shareholder value.
Wrangler West intends to reinvest funds flow from operations and
other available capital to protect current, and add future,
value. Wrangler West common shares trade on the TSX Venture
Exchange under the symbol "WX".
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Wrangler West Energy Corp.