Chinook Energy Inc. Announces Asset Disposition
CALGARY, ALBERTA - January 30, 2012 - Chinook Energy Inc.
("Chinook" or the "Company") (TSX: CKE)
is pleased to announce that it has entered into a purchase
and sale agreement with the City of Medicine Hat to sell
certain oil producing assets located in the Mannyberries area
of South Eastern Alberta (the "Divested Assets")
for consideration of approximately $36.2 million, subject to
customary closing adjustments (the "Transaction").
Closing of the Transaction is anticipated to occur on about
February 14, 2012, with an effective date of January 1,
2012 and is subject to customary conditions for an asset
divestiture of this nature. The City of Medicine Hat has
received City Council approval to proceed with the
Transaction. Chinook's third quarter 2011 average
production from the Divested Assets was approximately 345
boe/d (94% oil).
In the short term, the proceeds of the Transaction are
anticipated to be used to reduce current bank debt and
improve Chinook's balance sheet. Chinook estimates its
bank debt on the closing date of the Transaction will be
approximately $100 million. The disposition permits Chinook
to monetize assets at a competitive price and is anticipated
to provide Chinook with increased financial flexibility to
pursue the Company's inventory of crude oil and liquids
rich drilling projects in its core areas both domestically
and internationally.
About Chinook Energy Inc.
Chinook is a Calgary-based public oil and natural gas
exploration and development company that combines high
quality gas and liquids balanced assets in Western Canada
with an exciting high growth oil business onshore and
offshore Tunisia in North Africa.
For further information please contact:
Matthew Brister L. Geoff Barlow
President and Chief Executive Officer Vice-President, Finance
and Chief Financial Officer
Chinook Energy Inc. Chinook Energy Inc. Telephone: (403)
261-6883 Telephone: (403) 261-6883
Website: www.chinookenergyinc.com
Reader Advisory
Forward Looking Statements
In the interests of providing Chinook shareholders and
potential investors with information regarding Chinook,
including management's assessment of Chinook's
future plans and operations and the timing thereof, certain
statements contained in this news release are forward-looking
statements or information within the meaning of applicable
securities legislation, collectively referred to herein as
"forward-looking statements." Forward-looking
statements in this news release include, but are not limited
to: the expected proceeds of the sale of the Divested Assets,
the expected closing date of the Transaction; the use of
proceeds from the Transaction and the Company's
anticipated debt position subsequent to closing of the
Transaction. Although Chinook believes that the expectations
reflected in the forward-looking statements contained in this
news release, and the assumptions on which such
forward-looking statements are made, are reasonable, there
can be no assurance that such expectations will prove to be
correct. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no
W: 68855 001News Releases2012Jan 2012 PR - Manyberries Sale 03.doc
assurance that the plans, intentions or expectations upon
which they are based will occur. By their nature, forward-
looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific,
that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements
will not occur, which may cause the Company's actual
performance and financial results in future periods to differ
materially from any estimates or projections of future
performance or results expressed or implied by such
forward-looking statements. These assumptions, risks and
uncertainties include, among other things: the risk that the
Company may not successfully divest the Divested Assets
within the expected timeframe or at all; the risk that the
potential benefits of the Transaction will not be realized;
closing adjustments being required that adversely affect the
consideration received by Chinook; and volatility of and
assumptions regarding commodity prices and other assumptions
underlying the Company's debt guidance. As a
consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are
cautioned that the forgoing list of factors is not
exhaustive. Additional information on these and other factors
that could effect Chinook'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) and at Chinook's
website (www.chinookenergyinc.com). Furthermore, the
forward-looking statements contained in this news release are
made as at the date of this news release and Chinook does not
undertake any obligation to update publicly or to revise any
of the forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be
required by applicable securities laws. The forward-looking
statements contained in this news release are expressly
qualified by this cautionary statement.
Barrels of Oil Equivalent
Barrels of oil equivalent (boe) is calculated using the
conversion factor of 6 mcf (thousand cubic feet) of natural
gas being equivalent to one barrel of oil. Boe may be
misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 bbl (barrel) 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 the value ratio based on the current
price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion ratio at 6:1 may be misleading as an
indication of value.
W: 68855 001News Releases2012Jan 2012 PR - Manyberries Sale 03.doc
distribué par | Ce noodl a été diffusé par Chinook Energy Inc. et initialement mise en ligne sur le site http://chinookenergyinc.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-31 21:50:03 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
2012-01-31 - News Release (PDF) |