CALGARY, Alberta, Jan. 12, 2016 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“Toscana Energy” or the “Company”) (TSX:TEI) announces that it will not proceed with the previously disclosed acquisition of assets that produce 300 barrels a day of light oil production, for $15,000,000 in cash, as outlined in the press release dated November 25, 2015. The significant erosion in energy prices coupled with very soft debt and financial markets are the main drivers in the decision.
In addition, due to the current commodity price environment and as a further measure to protect the integrity of the balance sheet and to protect the Company’s financial flexibility, the Company has changed its dividend policy to reduce its monthly dividend from $0.10 per common share of the Company (“Common Share“) to $0.05 per Common Share (or the equivalent of $0.30 per Common Share to $0.15 per Common Share on a quarterly basis), a decrease of 50%. A cash dividend of $0.05 per Common Share will be paid on February 16, 2016 in respect of January 2016 production of the Company for shareholders of record on January 29, 2016. The ex-dividend date is January 27, 2016. This dividend is an eligible dividend for purposes of the Income Tax Act (Canada). The declaration of dividends is determined on a monthly basis by the board of directors of the Company and is based on the sustainability of cash flows and earnings in the future. The board of directors continues to monitor operations closely and will take further action if needed to protect the Company’s financial position.