CALGARY, ALBERTA–(Marketwired – June 30, 2014) –Shoreline Energy Corp. (“Shoreline” or the “Company”) (TSX:SEQ) announces that it will not make the interest payment on its unsecured convertible debenture scheduled for June 30, 2014 (the “June 2014 Debenture Interest Payment”). The Company intends to make the June 2014 Debenture Interest Payment, plus accrued interest thereon, following resolution of the Company’s secured debt obligations, pursuant to the forbearance agreements entered into with each of the Company’s senior lenders (collectively, the “Senior Lenders”).
The Special Committee of the board of directors of Shoreline continue to work in cooperation with the Senior Lenders to complete Shoreline’s strategic alternatives process, co-ordinated by its advisor RBC Capital Markets. Shoreline intends to release additional details with respect to the results of this process as they become available.
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The Company cautions that there are no assurances or guarantees that (i) the process will result in a transaction; (ii) if a transaction is undertaken, the terms or timing of such transaction will be satisfactory to all stakeholders; or (iii) the ongoing conditions of forbearance agreements between the Company and its senior lenders will be met to the satisfaction of the lenders.
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. 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.
This news release contains forward-looking statements relating to successful completion of a strategic alternatives process, and satisfaction of forbearance conditions. These forward-looking statements may include opinions, assumptions, estimates and 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 nature and success of negotiations and of a strategic alternatives process; 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 negotiate acceptable terms with current and future lenders and/or equity providers; inability to obtain requisite approvals of various stakeholders; 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.
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer