The Company is Confident a Solution Will Be Found
CALGARY, Alberta – Pieridae Energy Limited (Pieridae or the Company) (TSXV: PEA) issued the following statement from CEO Alfred Sorensen with respect to the Alberta Energy Regulator’s (“AER”) decision to deny the application to transfer licences for Shell’s Foothills Assets to Pieridae:
“We are disappointed by the AER’s decision regarding the transfer of licences for the Foothills Assets.
The decision has nothing to do with Pieridae’s financial position nor its ability to clean up certain assets. The issue for denial was the fact that there is no precedent for splitting a licence or no ability under the current legislation to do so. This issue only applies to the Waterton and Jumping Pound gas plants.
Both companies are moving swiftly to evaluate options on the transfer applications and will continue to attempt to seek clarity from the regulator to define an appropriate path forward.
The Foothills assets are high quality operating gas wells and gas processing plants with long term potential and remain attractive as the anchor production for our Goldboro LNG Project.
The senior leadership team at Pieridae has experience in acquiring, developing and decommissioning sour gas resources-related infrastructure in the Alberta Foothills and Northern B.C. regions and is supported by more than two hundred experienced people who previously worked for Shell on these assets, including a strong technical team of asset integrity personnel. The ongoing employment of these individuals will ensure the continued responsible operation, maintenance, and timely replacement and decommissioning of all resource infrastructure in accordance with applicable laws and regulations and with a focus on health, safety and environmental responsibility.
Pieridae remains financially sound, having recently announced record growth in revenue, net operating income, adjusted funds flow from operations, and production in the midst of very challenging market conditions. Our guidance for 2020 projects the Company to remain on this path.
The Company is confident that the Shell asset acquisition, having previously closed and been successfully integrated into Pieridae’s operations, can be aligned to address the concerns of the AER. The company appreciates the continued support and collaboration of Shell Canada in this matter.”
Pieridae Energy Chief Executive Officer