VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. (the "Company") is pleased to announce that it has granted a third party an option to purchase (the "Option") the Company’s Montney Shale lands and wells for CDN$16,070,000 in cash. The Option is exercisable until June 30, 2014 and, in the event the third party exercises the Option, the subsequent sale will be subject to certain conditions including shareholder and regulatory approval, including the approval of the TSX Venture Exchange.
The Company's shallow rights, gas plant, water disposal wells, and coal bed methane wells are not subject to the Option and shall be retained by the Company.
The third party has also agreed to provide the Company with a CDN$500,000 operating loan (the "Loan") and extend the due date of all amounts owed by the Company to the third party in accordance with the financing arrangement announced on January 16, 2013 (the "Prior Financing"), until May 1, 2015.
In the event the third party exercises the Option, the Loan and all amounts owed by the Company to the third party in connection with the Prior Financing shall be repaid from the proceeds received by the Company from the sale of the Company's Montney Shale lands. Should the third party elect not to exercise the Option or if sale the Company's Montney Shale lands does not occur, the Loan will become due May 1st, 2015.
On behalf of the Board of Directors of
Canada Energy Partners Inc.
For more information, please contact:-
CANADA ENERGY PARTNERS INC.
1680-200 Burrard St.
Vancouver, BC V6C 3L6
Main Phone: (604) 909-1154 / Facsimile: (604) 488-0319
Attention: John Proust, Chairman
Direct Phone: (604) 696-9020
Attention: Ben Jones, President and CEO
Direct Phone: (225) 388-9900
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: This press release contains forward looking statements relating to expected or anticipated future events and operations, number of wells to be drilled, timing of projects and anticipated results that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the companies' capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the companies that actual results achieved during the forecast period will be the same in whole or in part as that forecast.