CALGARY, ALBERTA–(Marketwired – Dec. 11, 2013) – Shoreline Energy Corp. (TSX:SEQ) (“Shoreline” or the “Company“) announces that the Board of Directors intends to delay declaration of any dividends to the time of closing of the previously announced joint venture between the Company and Acceleration Resources. The joint venture is currently expected to close on or before January 31, 2014. The Company remains committed to a sustainable dividend policy and any dividends declared will be declared in accordance with the Company’s Dividend Policy.
The Dividend Policy of Shoreline is to distribute to its common shareholders all funds surplus to the operating and capital expenditure needs as determined by the Board of Directors of the Company The Company has set a target dividend payout ratio in respect of each financial year of not less than 25% and not greater than 65% of annual net free cash flow. The actual payout ratio is dependant on various factors including but not limited to;
- solvency requirements of the Company;
- restrictions imposed by banking or other funding covenants by which the Company is bound from time to time;
- forecast operating requirements of the Company; and
- capital expenditure needs of the Company from time to time including maintenance of existing production rates and exploitation of growth opportunities.
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 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 Corpany’s website, www.shorelineenergy.ca.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation’s completion of a joint venture arrangement and payment of dividends. These forward-looking statements may include opinions, assumptions, estimates, management’s assessment of 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 completion of the joint venture with Acceleration Resources; payment of dividends; the Company’s net debt; increases in production rates; 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; failure to meet credit facility covenants; 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.
Suite 500, 500 5th Ave SW
Calgary, Alberta, T2P 2V6