Shoreline Energy Corp (TSX: SEQ), a Calgary-based oil and gas company, recently obtained creditor protection under the Companies’ Creditors Arrangement Act (Canada) (CCAA). The company filed for CCAA protection as current cash in hand “would not allow it to meet its current obligations as they become due.” Shoreline said it will continue operations and explore strategic alternatives, including restructuring debt obligations and pursuing asset sales. In 2013, the company entered into a funding agreement with U.S. private equity firm Acceleration Resources that included plans for an investment of up to $50 million in its Wattenberg Field assets in Colorado.
Shoreline Energy Corp. Obtains Creditor Protection
CALGARY, ALBERTA–(Marketwired – April 14, 2015) – Shoreline Energy Corp. (TSX:SEQ) (“Shoreline” or the “Company”) announces today that it has obtained creditor protection under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) pursuant to an Order granted on April 13, 2015 by the Court of Queen’s Bench of Alberta, Judicial Centre of Calgary (the “Court”).
The CCAA filing follows a review of Shoreline’s strategic alternatives by its Board of Directors. Details of the CCAA filing and related matters will soon be available on the Monitor’s website, http://www.grantthornton.ca/services/reorg/creditor_updates/shoreline.
Shoreline had sought protection under the CCAA as its current cash in hand would not allow it to meet its current obligations as they become due. It was determined by the Board of Directors that as a result of the Company’s current financial situation and the current commodity price environment that seeking CCAA protection would be in the best interests of the Company and all of its stakeholders. The Company intends to continue with its operations in the Peace River Arch and continue efforts to pursue strategic alternatives, including restructuring its existing debt obligations and pursuing the sale of assets or similar transactions while under CCAA protection.
The Court has granted CCAA protection for an initial period expiring May 13, 2015, to be extended thereafter as the Court deems appropriate, during which time Shoreline will formulate a Plan of Arrangement (the “Plan”) pursuant to the CCAA.
Trading in the common shares and debentures of the Company on the Toronto Stock Exchange (“TSX”) has been halted and the Company anticipates that it will be delisted.
Further news releases will be provided on an ongoing basis throughout the CCAA process as may be determined necessary.
About Shoreline Energy Corp.
Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Common Shares are currently listed on the TSX under the trading symbol “SEQ” and the debentures under the trading symbol “SEQ.DB”. Additional information regarding Shoreline is available under the Company’s profile at www.sedar.com or at the Company’s website, www.shorelineenergy.ca.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements relating to the implementation of CCAA proceedings and the reorganization or restructuring of the capital and strategic alternatives process, business and financial affairs of the Company, the Company’s plans and other aspects of the Company’s anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management’s assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,” “should,” “plan,” and similar expressions suggesting future outcomes, and include statements that actions, events or conditions “may,” “would,” “could,” or “will” be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Company’s ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Company to access capital and credit. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with the level of the Company’s debt, the implementation and impact of obtaining any reorganization or restructuring of the current debt and strategic alternatives process, business and financial affairs of the Company, future co-operation of the creditors of the Company, the Company’s ability meet its ongoing obligations during the CCAA process and thereafter, the ability of the Company to maintain the listing of its common shares and debentures on the TSX, the ability to maintain relationships with suppliers, customers, employees and other third parties in light of the Company’s current situation and the CCAA proceedings, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Specifically, some of the material risks include the uncertainty involved in the CCAA proceedings and the implementation of a Plan under the CCAA, strategic alternatives and capital restructuring process. Actual timelines associated with the CCAA proceedings may vary from those anticipated in this news release and such variations may be material.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Enquiries for the Monitor may be directed to:
Grant Thornton Limited, Calgary, Alberta
Office: + 1 403 296 3143
Shoreline Energy Corp.
Mr. Dan Thompson
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
Suite 500, 500 – 4th Ave. SW
Calgary, Alberta T2P 2V6
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