CALGARY, ALBERTA–(Marketwired – Dec. 19, 2013) – Lone Pine Resources Inc. (“Lone Pine” or the “Company”) today announced the disposition of certain non-operated, minority working interest assets and an update regarding its undeveloped land continuation efforts at Pointed Mountain in the Liard Basin.
Non-Operated Asset Disposition
The Company’s wholly-owned subsidiary, Lone Pine Resources Canada Ltd., has completed the disposition of certain non-operated, minority working interest, oil producing properties located in the Loon area of Northern Alberta for total gross cash proceeds of $7.8 million, subject to normal course closing adjustments. The assets sold had average sales volumes during the last six months of approximately 80 barrels of oil equivalent per day. The transaction closed on December 18, 2013 and Lone Pine used the net proceeds of the sale to reduce indebtedness outstanding under its existing senior secured credit facility.
Undeveloped Land Continuation at Pointed Mountain in the Liard Basin
In connection with its previously-announced land continuation efforts in the Pointed Mountain area of the Liard Basin in the Northwest Territories, and further to its receipt of a commercial discovery declaration from the National Energy Board for natural gas resources contained in the Upper and Lower Besa River shale intervals, Lone Pine has obtained 21-year lease renewals from the Minister of Aboriginal Affairs and Northern Development in accordance with section 62 of the Canada Oil and Gas Lease Regulations. Lone Pine now holds a 100% operated working interest in approximately 53,000 acres at Pointed Mountain in the Liard Basin under leases with terms to 2033.
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Canadian securities laws. All statements, other than statements of historical facts, that address activities that Lone Pine assumes, plans, expects, believes, projects, aims, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements provided in this news release are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Lone Pine cautions that forward-looking statements may include statements with respect to, among other things: our plans to implement a restructuring and the timing thereof; our future financial condition and results of operations; our access to capital and expectations with respect to liquidity, capital resources and our ability to continue as a going concern; estimates of future capital expenditures; our future revenues, cash flows and expenses; our plans and expectations with respect to the operation of our business and ability to satisfy our obligations during the restructuring; our future business strategy and other plans and objectives for future operations; our future development opportunities and production mix; our outlook on oil, natural gas and natural gas liquids (NGL) prices; the amount, nature and timing of future capital expenditures, including future development costs; our ability to access the capital markets to fund capital and other expenditures; estimates of our oil and natural gas reserves; estimates of our future oil, natural gas and NGL production, including estimates of any increases or decreases in our production; estimates of our average global market capitalization; our assessment of our counterparty risk and the ability of our counterparties to perform their future obligations; the impact of federal, provincial, territorial and local political, legislative, regulatory and environmental developments in Canada, where we conduct business operations, and in the United States; and our estimates of additional costs and expenses we may incur.
These risks relating to Lone Pine include, but are not limited to, our ability to complete a restructuring or alternative transaction, including associated risks such as (i) our ability to negotiate and execute definitive documentation with respect to the