CALGARY, ALBERTA–(Marketwired – Oct. 14, 2014) – Anterra Energy Inc. (“Anterra” or the “Company”) (TSX VENTURE:AE.A)(OTCQX:ATERF) announces that it has signed a non-binding agreement dated October 11, 2014 with Landocean Petroleum Corp., Limited (“LandOcean”) for the purpose of accelerating the development of Anterra’s properties in Alberta. The proposed transaction contemplates LandOcean providing services, including third party expenditures, totaling $40.0 million (Canadian dollars) between September 17, 2014 and December 31, 2015 on the following properties of Anterra: Nipisi, Breton, Strathmore, Sakwatamau and Two Creek. The services include development planning, oversight of recommended operations and procurement of development services. All development plans and expenditures will be reviewed and approved by Anterra, and Anterra will engage an independent third party to assist in the review and approval process. The proposed transaction is subject to negotiation of definitive agreements, receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange (“TSX-V) and receipt of shareholder consent.
Anterra intends to pay for the services by way of cash, the issuance of Class A common shares or the assignment of an interest in the property to which the services relate (or a combination of the foregoing). Any shares issued in payment for the services will be issued in accordance with the policies of the TSX-V and at a price not less than $0.068 per share.
LandOcean is based in Hong Kong and is wholly owned by LandOcean Energy Services Co. Ltd., a Beijing-based international oilfield services company, listed on the Shenzhen market under the code 300157. LandOcean Energy Services Co. Ltd. is also the parent of a significant shareholder of Anterra, (LandOcean Resources Investment Canada Co. Ltd., which holds approximately 22% of Anterra’s issued and outstanding shares). While the proposed transaction is subject to the requirements of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, it is expected that exemptions from the formal valuation and minority approval requirements are available to Anterra.
About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with an expanding presence in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol “AE.A” and trades on OTCQX International under the symbol “ATERF”. Additional information is available on the Company’s website at www.anterraenergy.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.
Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. In particular, forward-looking statements in this News Release include statements relating to the proposed transaction. Anterra has provided the forward-looking information in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the necessary government, regulatory, board, shareholder and other third party approvals; the ability of Anterra and LandOcean to satisfy, in a timely manner, the other conditions to the proposed transaction; and expectations and assumptions concerning, among other things: commodity prices and interest rates, planned synergies, capital efficiencies and cost-savings, and the availability and cost of labour and services. There can be no assurance that the proposed transaction will proceed on the basis set out above or at all.
Anterra Energy Inc.
Dr. Gang Fang
Chairman and Chief Executive Officer
(403) 261-6601 (FAX)
Anterra Energy Inc.
Norm Knecht CA
Vice President Finance and CFO
(403) 261-6601 (FAX)