CALGARY, Alberta, Oct. 17, 2019 (GLOBE NEWSWIRE) -- Painted Pony Energy Ltd. ("Painted Pony" or the "Corporation") (TSX: PONY) is pleased to announce that it has entered into a definitive agreement to sell a 75% working interest in 11,280 gross acres (8,460 net acres) in the north east British Columbia Montney for cash consideration of $45 million. The proposed transaction is expected to close on or about October 31, 2019. The proposed transaction is subject to closing conditions. The acreage outlined in the proposed transaction totals approximately 4% of Painted Pony’s total Montney acreage.
Commenting on the proposed transaction, Patrick Ward, President and CEO of Painted Pony said, “We are very pleased with this sale as it will reduce our balance sheet leverage and improve our financial flexibility without any impact on current production volumes or Proved Developed Producing reserves.”
DEFINITIONS AND ADVISORIES
Currency: All amounts referred to in this press release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Information: This press release contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation's current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. Words such as "expected", "will", "proposed" and other similar words that indicate events or conditions may occur are intended to identify forward-looking information. In particular, this press release contains forward-looking information relating to the expected closing date of the proposed transaction and the anticipated impact of the proposed transaction on Painted Pony's financial condition.
Forward-looking information is based on certain expectations and assumptions including, but not limited to, the anticipated timing of closing of the transaction (including the satisfaction or waiver of conditions to closing).
Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although management believes that the expectations in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, the Corporation's actual results may vary materially from the forward-looking information.
Forward-looking information necessarily involves both known and unknown risks that could cause actual results to differ materially from the forward-looking information. Additional information on these and other risk factors that could affect operational or financial results are included in the Corporation's annual information form for the year ended December 31, 2018, dated March 6, 2019, and in Painted Pony's management's discussion and analysis for the six months ended June 30, 2019, and in other reports filed with Canadian securities regulatory authorities.
Forward-looking information is based on estimates and opinions of management at the time the information is presented. Except as required by applicable securities laws, the Corporation does not undertake to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation's plans or expectations.
ABOUT PAINTED PONY
Painted Pony is a publicly-traded natural gas company based in Western Canada. The Corporation is focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony's common shares trade on the TSX under the symbol "PONY".
Patrick R. Ward
President and Chief Executive Officer
Stuart W. Jaggard
Chief Financial Officer
Director, Investor Relations
1-866-975-0440 toll free