CALGARY, ALBERTA–(Marketwired – Aug. 2, 2016) – Chinook Energy Inc. (TSX:CKE) (“Chinook” or the “Company“) announced today that it has initiated a review of strategic alternatives, which may include, among other things, a review of acquisition opportunities to expand its core Montney asset base, or establish a new core of operations. Chinook will also entertain merger, sale, joint venture or other opportunities that will result in a well-capitalized entity that can best develop its emerging Montney assets at Birley/Umbach, British Columbia and at Gold Creek, Alberta. Chinook is uniquely positioned with a strong positive cash position (unconsolidated June 30, 2016 net surplus forecasted to be approximately $21 million).
It is contemplated that this process may include all of Chinook’s assets, as well as any associated interests held by Chinook’s partner, WOGH Limited Partnership (“WOGH“), a wholly-owned subsidiary of Chinook’s major shareholder, Alberta Investment Management Corporation on behalf of certain of its clients. WOGH is also well positioned with a strong positive net surplus and is Chinook’s sole partner at Birley/Umbach and Gold Creek.
As previously announced (June 13, 2016 News Release re: Tournament Exploration Ltd.), Chinook has successfully completed the divestiture of the majority of its non-core assets to create a well-capitalized company focused on Montney development at its core Birley/Umbach and Gold Creek assets on which Chinook’s management has identified an extensive inventory of drilling locations.
Chinook’s management and Board of Directors have determined that it is timely to evaluate a range of strategic alternatives aimed at enhancing shareholder value. Accordingly, Peters & Co. Limited (“Peters & Co.“) has been engaged by the Company as its exclusive financial advisor to assist in this comprehensive review and analysis of strategic alternatives. Peters & Co. will immediately commence a broad marketing effort to solicit interest in strategic transactions to maximize value for Chinook’s shareholders.
The Company does not intend to provide further updates on its strategic review until such time as management and the Board of Directors determines is appropriate. There can be no guarantee that this review will result in a transaction, or if a transaction is undertaken, as to its terms or timing.
About Chinook Energy Inc.
Chinook is a Calgary-based public oil and natural gas exploration and development company with multi-zone conventional production and resource plays in western Canada. The common shares of Chinook are listed for trading on the TSX under the symbol: “CKE”.