CALGARY, ALBERTA--(Marketwire - Jan. 21, 2013) - Argosy Energy Inc. ("Argosy" or the "Company") (TSX:GSY) announced that the Toronto Stock Exchange ("TSX") has informed the Company that it is reviewing the eligibility for continued listing of Argosy's common shares on the TSX. The TSX initiated its delisting review pursuant to its continued listing criteria and as a result of the market value of the Company's TSX listed shares, the Company's financial condition and management deficiencies including not currently having a designated Chief Financial Officer. The market value of Argosy's listed equity has declined to less than the required $3.0 million for a period of 30 consecutive days.
The Company is being reviewed under the TSX's Remedial Review Process and has been granted 60 days to comply with all requirements for continued listing. If the Company is unable to demonstrate on or before March 21, 2013 that it meets all TSX requirements for continued listing, the Company's securities will be delisted 30 days from such date.
At this time, Argosy intends to defend its listing and will simultaneously pursue other alternatives including listing on TSX Venture Exchange or NEX. The Company is also continuing its process of evaluating and pursuing financing opportunities and corporate restructuring alternatives. In addition, the Company continues to negotiate with its lender the extension of its existing credit facilities. The Company is also presently reviewing candidates for the position of Chief Financial Officer. The ultimate results of these ongoing financing efforts may be a factor in the Company's ability to remain publically listed. However, no assurances can be given that the financial issues being faced by the Company will be resolved satisfactorily and the Company's securities may be delisted.
Despite continued low natural gas prices, Argosy is currently generating positive free cash flow. This is largely the result of low operating costs, commodity price hedging activities and substantial reductions in general and administrative costs.
The Company currently has approximately 52% of its current net production hedged from now until December 31, 2013 at a price of $3.30 per GJ or approximately $3.45 per mcf. Current daily production is approximately 460 boe/d.
ABOUT ARGOSY ENERGY INC.
Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.
Advisory Regarding Forward-Looking Information
This press release contains forward-looking information concerning including but not limited to the Company's banking arrangements. Although Argosy believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form as well as other filings of the Company with Canadian securities regulators, which filings are available under the Corporation's profile at www.sedar.com.