Shoreline Energy Fund

April 21, 2010 17:03 ET

Shoreline Energy Fund Announces $6,000,000 Asset Acquisition

TORONTO, ONTARIO--(Marketwire - April 21, 2010) - Shoreline Energy Fund ("Shoreline") is pleased to announce that it has successfully closed an acquisition to acquire all of the assets of Western Canada Energy Ltd. (WCE), a Calgary based junior oil and gas producer, with an effective date of March 31, 2010. 

Total consideration of $6,075,000 was paid for the oil and gas assets which include 188 boe/d of current production (6:1 conversion), over 17,000 net acres of undeveloped land, and seismic data concentrated in the Peace River Arch area of NW Alberta. When adjusted for land value at $100 per net acre, the production is being acquired at a multiple of $23,271 per flowing barrel of oil equivalent per day.

The WCE transaction is consistent with Shorelines investment mandate to acquire and consolidate assets in areas of interest and provides an increased presence adjacent to the Fund's current oil development project. On a go forward basis, Shoreline plans to proceed with several projects on the WCE lands, including completion and tie-in of existing wells, and development drilling which is expected to increase production and cash flow.

Shoreline wishes to thank Renvest Mercantile Bancorp and its Global Resource Fund for providing timely acquisition and development financing for this transaction. "Renvest understood our strategic objective and the complexities of the transaction and have expressed a willingness to further assist us in our asset growth plan," stated Shoreline Fund Manager Trevor Folk.

Shoreline anticipates production to average over 220 boe/d for the second quarter of 2010, and anticipates increasing production following the drilling of two oil wells in our Pouce Coupe core area in the latter part of the second quarter of 2010.

Shoreline Energy Fund is a private mutual fund trust, designed to fill the niche formerly occupied by the public energy income trust. Unitholders of Shoreline receive the benefits of quarterly distributions and quarterly liquidity with Shoreline holding direct control over producing oil and gas assets. In addition to the benefits of the traditional energy income trust, Shoreline also has the ability to hold an ownership position in early stage and emerging oil and gas companies which hold significant potential for value growth.

Shoreline Energy Fund is available for new investment on a quarterly basis. For a copy of the Shoreline Energy Fund Offering Memorandum, or to discuss the investment mandate of the Fund, please contact Mr. Trevor Folk, President Shoreline Capital Management at 1-866-773-1562.

This press release contains forward-looking statements including expectations of future investment returns. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact Information

  • Shoreline Capital Management
    Mr. Trevor Folk