CALGARY – Strategic Oil & Gas Ltd. (TSXV: SOG) (“Strategic” or the “Company”) announces that following discussions with GMT Capital Corp (“GMT”), manager of certain investment funds which hold $14.6 million of the Company’s outstanding first-lien secured notes, GMT has delivered a Notice of Intention to Enforce Security under Section 244 of the Bankruptcy and Insolvency Act (Canada) whereby GMT sets forth its intention to enforce its security for repayment of the notes. In connection therewith, the Company has consented to the appointment of a receiver.
As previously announced, the Company obtained creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in April 2019. A comprehensive sales and investment solicitation process (“SISP”) was conducted in connection with the CCAA proceedings. Unfortunately, due to the prolonged depression in commodity prices and a lack of available capital in the oil and gas sector, the Company was unable to secure a transaction on acceptable terms.
Upon the expected appointment of a receiver, it is anticipated that all of Strategic’s directors and officers will resign and the receiver will be in charge of managing the day-to-day affairs of the Company.
Strategic is a junior oil and gas company with operated light oil assets, primarily in northern Alberta. Strategic’s primary operating area is at Marlowe, Alberta.