CALGARY, ALBERTA–(Marketwired – Nov. 26, 2014) –
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StonePoint Energy Inc. (TSX VENTURE:STO) (“StonePoint” or the “Corporation“) has filed on SEDAR its unaudited interim financial statements and related management’s discussion and analysis (“MD&A“) for the three and nine months ended September 30, 2014. The financial statements and MD&A will be available for review on SEDAR at www.sedar.com.
On October 2, 2014, the Corporation completed a non-brokered private placement for aggregate gross proceeds of $21.0 million and appointed a new management team and board of directors (the “Recapitalization Transaction“).
On November 4, 2014, the Corporation provided details with respect to a rights offering (“Rights Offering“) to the holders of common shares of the Corporation (“Common Shares“). Pursuant to the Rights Offering, each holder of Common Shares on November 24, 2014 (other than those holders of Common Shares that subscribed for Common Shares pursuant to the Recapitalization Transaction) received one transferable right (a “Right”) for every Common Share held. Every five Rights will entitle the holder thereof to purchase one Common Share at a price of $0.11 until the Rights expire at 4:00 p.m. (Calgary time) on December 24, 2014. Details of the Rights Offering are described in the Rights Offering circular available on SEDAR.
Following the completion of the Recapitalization Transaction and assuming the exercise of 27.2 million Rights issued in connection with the Rights Offering, StonePoint will have approximately 219 million Common Shares outstanding.
StonePoint’s current management team has extensive experience in creating shareholder value through a focused business plan and believes the current market environment provides an excellent opportunity to reposition the Corporation as a high growth junior oil and gas company. StonePoint is currently focusing on assets in the Deep Basin and Peace River Arch (“PRA“) areas of Western Canada. The new management team’s experience and track record of creating value in these areas are suited to its strategy of acquiring under-developed and undercapitalized assets and maximizing their production and reserves value. StonePoint believes there are numerous producers looking to monetize non-core assets to redirect capital expenditures into single-zone resource plays. The Corporation is presently focusing on acquiring and consolidating Deep Basin and PRA assets and developing these multi-zone stacked plays utilizing recent improvements in drilling and completions technology. In addition, StonePoint’s management expects to further enhance returns by optimizing production and reducing operating costs across all acquired assets.
StonePoint is a publically traded Calgary, Alberta based company engaged in the oil and gas exploration and development industry. The Common Shares are listed on the TSX Venture Exchange under the trading symbol “STO”.
ADVISORY: This news release may include forward-looking statements including opinions, assumptions, estimates, and, more particularly, statements concerning the completion of the Rights Offering and the number of securities issued by way of the Rights Offering.
When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements.
The forward-looking statements are founded on the basis of expectations and assumptions made by StonePoint. Forward-looking statements are subject to a wide range of risks and uncertainties, and although StonePoint believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward -looking statements including, but not limited to, regulatory and third party approvals not being obtained in the manner or timing anticipated, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, changes in general market conditions and other factors more fully described from time to time in the reports and filings made by StonePoint with securities regulatory authorities.
Except as required by applicable laws, StonePoint does not undertake any obligation to publicly update or revise any forward-looking statements.
Steven R. VanSickle
President & CEO
StonePoint Energy Inc.
Vice President Finance & CFO