CALGARY, April 10, 2014 /CNW/ – Palliser Oil & Gas Corporation (“Palliser” or the “Company“) (TSXV:PXL) announces that in light of operational challenges and financial constraints facing the Company, the board of directors of Palliser (the “Board“) is conducting a strategic review of the Company’s business plan to identify appropriate actions for the Company. The strategic review is examining and considering the alternatives available to the Company with a view to enhancing shareholder value. Management and the Board are committed to acting in the best interests of the Company and its shareholders.
Palliser has retained National Bank Financial Inc. to act as its financial advisor in connection with the strategic review.
Palliser does not intend to disclose developments with respect to the strategic review unless and until the Board has approved a change to the business plan or any particular transaction or otherwise determines that disclosure is required or appropriate. There can be no assurances or guarantees that the strategic review will result in any change to the current business plan or the pursuit of any alternative plan.
In the first quarter of 2014 average production was approximately 1,850 boe/d and current production is in the range of 1,800 to 1,900 boe/d. Palliser had a minimal capital program of approximately $2 million in the first quarter, primarily focused on maintenance capital and lease preservation.
Year end financial statements are expected to be released on or about April 29, 2014.
About Palliser
Palliser is a Calgary-based junior oil and gas company focused on high netback heavy oil production in the greater Lloydminster area of Alberta and Saskatchewan.
Statements in this document may contain forward-looking information including matters related to the strategic review. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to: the risks associated with the oil and gas industry; commodity prices, and; exchange rate changes. Industry related risks could include, but are not limited to: operational risks in exploration; proposed dispositions not being completed or if completed, not providing the benefits expected; development and production; delays or changes in plans; risks associated to the uncertainty of reserve estimates; health and safety risks, and; the uncertainty of estimates and projections of production, costs and expenses. In addition, forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the ability of the Company to obtain financing on acceptable terms; the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand reserves through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products. Readers are cautioned that the foregoing lists of factors and assumptions are not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at the Company’s website (www.palliserogc.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Conversion
The Company has adopted the industry standard of 6:1 Mcf to Bbl when converting natural gas to barrels of oil equivalent. Disclosure provided herein in respect of Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 Bbl, utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Press release.
SOURCE Palliser Oil & Gas Corporation
For further information: Kevin J. Gibson, President & CEO, kgibson@palliserogc.com, (403) 209-5717, or; Ivan J. Condic, Vice President, Finance and CFO, icondic@palliserogc.com, (403) 209-5718