CALGARY, Aug. 31, 2015 /CNW/ – Marquee Energy Ltd. (“Marquee” or the “Company”) (TSXV: “MQL”) announces that concurrent with the Acquisition previously announced on August 13, 2015, the Company's banking syndicate confirmed that Marquee' borrowing base remains unchanged at $95 million. However, as part of ongoing cost reduction initiatives, Marquee will reduce its borrowing base to $70 million effective August 31, 2015, which will decrease future standby and commitment fees. Marquee continues to focus on cost reductions and prudent management of its balance sheet and expects to exit 2015 with net debt of approximately $47-49 million.
Additionally, in accordance with the Company's previously approved stock option plan, Marquee has granted an aggregate of 3,085,000 options (“Options”) to purchase common shares in the capital of the Company to certain directors, officers, employees and consultants. The Options each have an exercise price of $0.52 per common share, are exercisable for a period of five years and vest in one quarter increments on the sixth month, eighteenth month, thirtieth month and forty second month anniversaries from the date of the grant. The grants are subject to the approval of, and the Company fulfilling the requirements of the TSX Venture Exchange.
Marquee Energy Ltd. is a Calgary based, junior energy company 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. The Company's shares are traded on the Toronto Stock Exchange under the trading symbol “MQL.V” and on the OTCQX marketplace under the symbol “MQLXF”. An updated presentation and 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.
FORWARD-LOOKING STATEMENTS OR INFORMATION
Certain statements included or incorporated by reference in this news release may constitute forward-looking statements under applicable securities legislation. Such forward-looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release may include, but are not limited to, Marquee's estimate of exit 2015 net debt.
Such forward-looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment, services and supplies in a timely manner to carry out its activities; the ability of the Company to market crude oil, natural gas liquids and natural gas successfully to current and new customers; the ability to secure adequate product transportation; the timely receipt of required regulatory approvals; the ability of the Company to obtain financing on acceptable terms; interest rates; regulatory framework regarding taxes, royalties and environmental matters; future crude oil, natural gas liquids and natural gas prices; the ability to successfully integrate acquisitions into Marquee's business and management's expectations relating to the timing and results of development activities.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking information. These risks and uncertainties and other material risk factors affecting the Company and its business contained in Marquee's Annual Information Form, which is available under Marquee's issuer profile on SEDAR at www.sedar.com.
The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.
NON-GAAP FINANCIAL MEASURES
This press release contains the term “net debt”, which does not have a prescribed meaning under IFRS and, therefore, may not be comparable with calculations of a similar nature by other companies. Net debt is defined as current assets less current liabilities (excluding fair value of commodity contracts). Management considers net debt an important additional measure of the amount that would be needed to pay off debt if no further capital expenditures were incurred.
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 release.
SOURCE Marquee Energy Ltd.