Lateral Capital Corp.

TSX VENTURE : LCP


Lateral Capital Corp.

February 01, 2013 17:35 ET

Lateral Capital Enters Into Novation Agreement to Extend the Closing Date to Acquire Light Oil Assets in Southeast Saskatchewan

CALGARY, ALBERTA--(Marketwire - Feb. 1, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Lateral Capital Corp. ("Lateral" or the "Company") (TSX VENTURE:LCP) is pleased to announce that it has executed a Novation Agreement (the "Agreement") with an undisclosed company, to extend the closing date from January 30, 2013 to March 25, 2013. The Agreement provides for total consideration of $69.0 million (the "Transaction") with an effective date of December 1, 2012. Under the terms of this Agreement, the Company has made a $2 million dollar non-refundable deposit. The Transaction will be funded through a combination of equity and debt financings, the terms and conditions of which will be announced shortly. The Transaction is subject to customary closing conditions, including TSX Venture Exchange approval.

Cautionary and 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 proposed Transaction; the Corporation's petroleum and natural gas production and reserves with respect to the assets to be acquired; the Corporation's petroleum and natural gas production on an aggregate basis upon completion of the proposed Transaction; anticipated closing dates of the asset acquisition; the closing of the financing and the anticipated timing thereof and the expected use of proceeds from the financing. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Corporation, including expectations and assumptions concerning well production rates and reserve volumes in respect of the assets to be acquired; expectations and assumptions concerning well production rates in respect of existing wells; project development and overall business strategy. Although management of the Corporation 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 statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Corporation relating to the future. Readers are cautioned that reliance on such statements and 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 and 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. 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 or the TSX Venture Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lateral Capital Corp.
    Corbin Blume
    President & CEO
    (587) 350-7500
    (587) 350-7505 (FAX)

    Lateral Capital Corp.
    Diane Zuber
    CFO
    (587) 350-7500
    (587) 350-7505 (FAX)

    Lateral Capital Corp.
    1000, 205 - Fifth Avenue SW
    Calgary, Alberta T2P 2V7