CALGARY, March 6, 2014 /CNW/ – Marquee Energy Ltd. (“Marquee” or the “Company”) (TSXV: MQL) (OTCQX: MQLXF) is pleased to announce the closing of the acquisition (the “Acquisition”) by the Company of certain low decline, operated, producing assets contiguous with the Company’s operations at Michichi from Paramount Resources Ltd. (“Paramount”).
The purchase price of $11,650,000 (the “Purchase Price”) was paid through the issuance of 13,705,883 common shares (“Shares”) in the capital of Marquee at $0.85 per Share. Paramount now owns approximately 14% of the outstanding shares of Marquee. As previously disclosed, 5,257,067 of the Shares to be issued to Paramount will be subject to a non-voting agreement pursuant to which Paramount will agree not to exercise the voting rights in respect of such Shares until Marquee obtains shareholder approval (“Shareholder Approval”) to permit voting of these Shares. Marquee will seek to obtain Shareholder Approval at its annual meeting of shareholders, which will be held as soon as practicable, and in any event by no later than May 15, 2014. Marquee will be recommending that its shareholders vote in favor of the Shareholder Approval. If Shareholder Approval is not obtained on or before May 15, 2014, Marquee will be required to issue to Paramount an additional 400,000 Shares, which will also be subject to the non-voting agreement.
Marquee will now be the largest landowner and control the most extensive gathering and processing system in the Michichi area. The Acquisition increases Marquee’s undeveloped land base at Michichi to over 135,000 net acres, and increases the Mannville/Banff oil drilling inventory to over 175 net horizontal drilling locations. The addition of a 100% owned and operated gas plant and an extensive gathering system extends Marquee’s control of infrastructure to over seven townships or 250 square miles.
ABOUT MARQUEE ENERGY LTD:
Marquee Energy Ltd. is a publicly traded Calgary-based growth oriented junior oil and gas company currently focused on high rate of return oil development and production. Marquee is committed to growing the company through exploitation of existing opportunities and continued consolidation within its core area at Michichi. Additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
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SOURCE Marquee Energy Ltd.
Richard Thompson
President & Chief Executive Officer
(403) 817-5561
Roy Evans
Vice President, Finance & Chief Financial Officer
(403) 817-5568[/expand]