CALGARY, ALBERTA–(Marketwired – Sept. 8, 2016) – Lone Pine Resources Canada Ltd. (“Lone Pine“) and Arsenal Energy Inc. (“Arsenal“) (TSX:AEI) (OTCQX:AEYIF) are pleased to jointly announce the approval by securityholders of Lone Pine and Arsenal of their previously-announced business combination by way of plan of arrangement (the “Arrangement“). The approvals were obtained at special meetings held today in Calgary Alberta, at which more than 98% of the votes cast by Lone Pine’s securityholders and more than 99% of the votes cast by Arsenal’s securityholders were voted in favour of the Arrangement.
Under the Arrangement, Lone Pine and Arsenal will combine under a new parent corporation named Prairie Provident Resources Inc. (“Prairie Provident“). Upon completion, shareholders of Lone Pine and Arsenal will receive common shares of Prairie Provident in substitution for their existing shares, with Prairie Provident in turn holding the combined undertakings of Lone Pine and Arsenal. At closing, Prairie Provident will have a fully-diluted share count of 100 million common shares, of which 77 million shares will be issued or issuable to former Lone Pine stakeholders with the remaining 23 million shares issued to former Arsenal shareholders.
Completion of the Arrangement remains subject to certain conditions, including the approval of the Court of Queen’s Bench of Alberta. Lone Pine and Arsenal intend to apply for a final order of the Court approving the Arrangement at a hearing scheduled for tomorrow morning. The anticipated closing date of the Arrangement is expected to be on or about September 12, 2016, assuming receipt of Court approval and the satisfaction of all other conditions.
For further details regarding the Arrangement are set out in the joint information circular of Lone Pine and Arsenal dated August 5, 2016, which is available under Arsenal’s profile on the SEDAR website and on Lone Pine’s website at www.lonepineresources.com.