Charger Energy Corp.

Charger Energy Corp.

March 07, 2012 16:34 ET

Charger Energy Corp., Seaview Energy Inc., Silverback Energy Ltd. and Sirius Energy Inc. Close Previously Announced Plan of Arrangement

CALGARY, ALBERTA--(Marketwire - March 7, 2012) -


Conversion of natural gas volumes to barrels of oil equivalent (boe) are at 6:1.

Charger Energy Corp. (formerly Seaview Energy Inc.) (the "Company") (TSX VENTURE:CHX) (formerly CVU.A, CVU.B) is pleased to announce that it has closed the previously announced business combination of Charger Energy, Seaview Energy, Silverback Energy and Sirius Energy pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). As part of the Arrangement, the Company has also changed its name from "Seaview Energy Inc." to "Charger Energy Corp." and has effected a consolidation of its Class A shares on the basis of 1 post-consolidation Class A share for every 5 pre-consolidation Class A shares. The Company's shares are expected to resume trading on the TSX Venture Exchange under the new ticker symbol "CHX" on or about March 8, 2012.

The Company is led by Tom Buchanan as Chairman and CEO, Dan O'Byrne as President and COO, Mark Walker as Vice President Finance and CFO, Kelly Cowan as Vice President Corporate Development and Land, John Milford as Vice President Exploration and Development and Dan Fournier as General Counsel and Corporate Secretary. The Board of Directors of the Company is comprised of Tom Buchanan, Dan O'Byrne, Mike Shaikh, Randy Findlay, John Wright and Daryl Gilbert.

This strategic business combination provides the Company with current production of approximately 3,500 boe/d, pro forma total proved reserves of 11.1 MMboe and total proved plus probable reserves of 19.4 MMboe as of September 30, 2011. The Company has 67.3 million Class A shares issued and outstanding and estimated current net debt of approximately $45 million with an operating credit facility of $65 million.

The Company's $60 million light oil focused 2012 capital program will be directed towards development of horizontal drilling opportunities in the Viking resource play in the Halkirk-Provost core area. The composition and pace of the 2012 development program may be adjusted to reflect commodity and capital market conditions as well as drilling and production results. This program is expected to result in 2012 pro forma, full year, average production for the Company of approximately 4,000 boe/d (42 to 44 percent oil and liquids).

The Company's strategy is to grow shareholder value by focusing primarily on acquiring, developing and producing light oil resource plays in Western Canada using horizontal drilling and multi-stage fracturing technology. The Company is pursuing an aggressive growth strategy focused on building a large undeveloped land base and drilling inventory through a combination of strategic acquisitions, farm-ins and crown land acquisitions.

As a result of the completion of the Arrangement, PricewaterhouseCoopers LLP has been appointed the auditors of the Company.

About Charger Energy Corp.

The Company is a Calgary, Alberta based crude oil and natural gas company that trades on the TSX Venture Exchange under the symbol "CHX". The Company is committed to maximizing value for its shareholders through successful drilling of internally-generated light oil prospects and by pursuing strategic property and corporate acquisitions with light oil potential using new completion technology. The Company has operated, high working interest, light oil and natural gas assets in the Halkirk-Provost and Ghost Pine areas of east central Alberta as well as the Wapiti and Peace River Arch areas of north western Alberta.

Reader Advisory and Note Regarding Forward Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected results of the Arrangement; the Company's petroleum and natural gas production and reserves; drilling opportunities; management team; business strategy; future development and growth opportunities; prospects; asset base; anticipated benefits from the Arrangement; value and debt levels; and capital programs. The forward- looking statements and information are based on certain key expectations and assumptions made by the management of the Company, including expectations and assumptions concerning prevailing commodity prices and exchange rates, applicable royalty rates and tax laws; future well production rates and reserve volumes; the timing of receipt of regulatory approvals; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services.

Although management of the Company believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct. Forward-looking information is provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Since forward- looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations, marketing and transportation, loss of markets, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources, failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws, royalties and environmental regulations. There are risks also inherent in the nature of the Arrangement, including failure to realize anticipated synergies or cost savings; risks regarding the integration of the four entities and incorrect assessments of the values of each entity. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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