CALGARY, ALBERTA–(Marketwired – July 3, 2013) –
NOT FOR DISTRIBUTION IN THE UNITED STATES
Shoreline Energy Corp. (TSX:SEQ) (“Shoreline” or the “Company“) announced today that as a result of a dispute relating to conveyance of legal title, the $15,700,000 principal payment due June 19, 2013 (as described in notes to Shoreline’s first quarter financial results) is no longer required to be paid by Shoreline. As a result, Shoreline has reduced its current debt by $15,700,000.
In addition, Shoreline is pleased to announce that it has selected a US lender for its US assets for the purpose of repaying its $5,000,000 bridge loan and for working capital. The current terms of the proposed debt contemplate a $15,000,000, two year term facility, repayable at any time, with Libor plus 11.5% interest which is consistent with Shoreline’s current cost of capital. Management anticipates that this facility will ensure that Shoreline can meet all its near term liabilities, working capital covenants, and capital expenditure needs, and most importantly correct its working capital covenant obligations with ATB Financial. Closing is scheduled on or before August 12, subject to completion of definitive documentation and fulfilment of certain closing conditions.
Also, Shoreline anticipates closing the final tranche of its flow through share offering on or about July 15, 2013 at which time Shoreline will publish its third quarter capital expenditure program and associated guidance.
About Shoreline Energy
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. The Common Shares are currently listed on the TSX under the trading symbol “SEQ” and the debentures under the trading symbol “SEQ.DB”. Additional information regarding Shoreline is available under the Corporation’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 terms and the anticipated dates of closing of the final tranche of the Company’s flow-through financing and its two year term debt facility. 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.
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
Shoreline Energy Corp.
Calgary Head Office
Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8