CALGARY, ALBERTA–(Marketwired – May 24, 2013) – Shoreline Energy Corp. (TSX:SEQ) (“Shoreline” or the “Company“) is pleased to announce that it has received a 60 day extension from its lender ATB Financial to comply with certain working capital covenants under the terms of its loan facility. Shoreline requested the extension in order to have adequate time to put in place a credit facility secured against its US assets which are not included in the Company’s current borrowing base, and which have a proved plus probable reserve value of over $63MM.
Shoreline is currently in discussions with senior lenders with respect to increased lending values on its Canadian assets and an initial lending value on its US assets. These lending facility indications are deemed sufficient for the Company to meet its short term and long term obligations and comply with existing working capital covenants.
Since Shoreline’s March 31, 2013 breach of its working capital covenant, the Company has improved its working capital deficit by approximately $4.5 million partially as a result of (i) a sale of a non core asset for gross proceeds of $955,000; and (ii) proceeds from the sale of flow through shares for gross proceeds of $3,000,000.
Upon selecting a US lender for its world class Colorado assets, Shoreline intends to publish details of its 2013 capital expenditure program and 2013 production guidance.
Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands and pays a quarterly dividend. Shoreline has 8,255,600 common shares outstanding. The Company’s common shares are currently listed on the TSX under the trading symbol “SEQ” and its debentures under the trading symbol “SEQ.DB”. Additional information regarding Shoreline is available under the Company’s profile at www.sedar.com or at the Corporation’s website, www.shorelineenergy.ca.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation’s plans and other aspects of the Corporation’s anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management’s assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,” “should,” “plan,” and similar expressions suggesting future outcomes, and include statements that actions, events or conditions “may,” “would,” “could,” or “will” be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation’s ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
Shoreline Energy Corp.
Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8