CALGARY, July 3, 2014 /CNW/ – SilverWillow Energy Corporation (“SilverWillow” or the “Corporation”) today announces that its Board of Directors has approved a reduction in staffing levels to align human resources with current levels of activity. SilverWillow will also take further steps to reduce general and administrative costs; however, the current executive officers of the Corporation will remain in their existing positions. It is anticipated that these measures will allow the Corporation to continue operations to the end of 2015 with current cash resources.
In March of 2014 SilverWillow announced that its Board of Directors had commenced a process to consider strategic and financial alternatives available to the Corporation with the objective of enhancing shareholder value. That process is ongoing and the Corporation cautions that there are no assurances that the process will result in a transaction, or if a transaction is undertaken, the terms or timing of such a transaction.
In the meantime, the Corporation will continue to address regulatory issues related to its 12,000 barrel per day Audet Steam Assisted Gravity Drainage (“SAGD”) project resulting from the Alberta Energy Regulator’s deferral of certain projects in the designated shallow SAGD area. The Corporation will also examine ways to advance the Corporation’s Birch Mountains oil sands leases which have approvals in place for an exploration drilling program.
For further information regarding SilverWillow’s business and operations please see SilverWillow’s Management Discussion and Analysis for the period ended March 31, 2014 which was filed on SEDAR at www.sedar.com and the Corporation’s website at www.swenergy.ca.
About SilverWillow Energy
SilverWillow Energy Corporation is a Calgary, Alberta based oil sands exploration and development company, with a portfolio of exploration leases in Canada’s Athabasca oil sands. To learn more, please visit www.swenergy.ca.
FORWARD-LOOKING INFORMATION: This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. The forward-looking information in this news release relates, but is not limited to, statements with respect to the Corporation’s plans to reduce staffing levels and reduce expenses, statements regarding the ability of the Corporation to maintain cash resources until the end of 2015, statements regarding the conduct of the Corporation’s strategic review process and the possibility of a transaction arising therefrom, as well as statements relating to the Corporation’s plans to advance the development of the Audet SAGD project and to prepare for exploration at the Birch Mountains oil sand leases.
The forward-looking information set out in this news release, is based on certain expectations and assumptions regarding, among other things, the Corporation’s ability to reduce expenses to an appropriate level as a result of the Corporation’s efforts, the absence of unexpected expenses which provide a further drain on the Corporation’s cash resources, the ability of the Independent Committee to identify appropriate transactions to enhance shareholder value; the availability of counterparties with whom the Corporation can conduct a transaction; the ongoing conduct of the exploration and development of the Corporation’s projects and properties; the ability of the Corporation to obtain required regulatory approval for the development of its projects; the ability of the Corporation to raise capital to fund the development of the projects; the geography of the areas in which SilverWillow will be exploring; and the sufficiency of budgeted capital expenditures in carrying out planned activities. These expectations and assumptions are based on certain factors and events that are not within the control of SilverWillow and there is no assurance they will prove to be correct.
Forward-looking information is subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied in such forward-looking information. Such risks, uncertainties and factors include, among others, the risk that unexpected expense could arise which cause the Corporation’s cash resources be depleted prior to the end of 2015, the risk that the Independent Committee and the Corporation are not able to identify an appropriate transaction to enhance shareholder value; the risk that new regulatory requirements may prevent the development of the Corporation’s projects; the risk that, even if new regulatory requirements do not restrict the development of the Corporation’s projects, regulatory approvals in respect of the projects will not be received in the timeframe or on the terms expected or at all; and the general risks associated with exploring for, developing and producing bitumen. Additional risks relating to the business and operations of SilverWillow are set forth in the Corporation’s annual information form for the year ended December 31, 2013 and in its most recent Management’s Discussion and Analysis, which are filed under the Corporation’s profile on SEDAR at www.sedar.com.
SilverWillow undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking information.
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SOURCE SilverWillow Energy Corporation
For further information:
please contact Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.