CALGARY, AB–(Marketwired – May 31, 2016) – Marquee Energy Ltd. (“Marquee” or the “Company”) (TSX VENTURE: MQL) is pleased to announce that it has completed the previously announced disposition of its non-core, shallow gas asset for total cash consideration of $5.57 million, net of initial closing adjustments (the “Transaction”).
The asset includes approximately 500 gross / 396 net wells, average production of approximately 5,700 mcf/d in Q1 2016, and low pressure gas gathering and processing infrastructure associated with the production. Marquee will retain high pressure gas gathering infrastructure in the area, which is required for the development of its Banff light oil play.
The Company expects the disposition to have a positive impact on general and administration expenses and asset retirement obligations (“ARO”), while having minimal impact on cashflow. Currently, the asset has no lending value attributable to it. The Transaction will serve to raise Marquee’s LLR to 1.8 and reduce its discounted corporate ARO by approximately 30%.
In the short term, the gross proceeds from the sale of the assets will be used to reduce the Company’s current debt and improve financial flexibility. The disposition is consistent with Marquee’s strategy to divest of the Company’s non-core assets to further focus the Company on its Banff light oil play at Michichi.
Acumen Capital Finance Partners Limited acted as a strategic advisor to Marquee with respect to the Transaction.
The Company’s Annual General Meeting of Shareholders is scheduled for 2:00 PM on Wednesday June 22, 2016 in the Altius Building, Second Floor, 500 4th Avenue SW, Calgary, AB, which, for clarity, has a record date for the entitlement to receive notice and to vote thereat of May 19, 2016.