Midway Energy Ltd.
TSX : MEL

Midway Energy Ltd.

April 01, 2011 08:25 ET

Midway Announces New Syndicated Credit Facility

CALGARY, ALBERTA--(Marketwire - April 1, 2011) - Midway Energy Ltd. ("Midway" or the "Company") (TSX:MEL) is pleased to announce a new syndicated credit facility (the "Syndicated Facility") and a new credit limit of $95 million.

The Syndicated Facility consists of an $85 million syndicated revolving credit facility and a $10 million revolving operating facility that replaces our previous demand facility. The Syndicated Facility will revolve until the term date, initially set as May 31, 2012, and is extendible annually. If not extended, the Syndicated Facility will automatically convert to a one year non-revolving term loan. The Syndicated Facility is led by ATB Financial and includes the Bank of Montreal. Approximately $65 million is currently drawn on the Syndicated Facility which will be reduced by the net proceeds from Midway's previously announced bought-deal financing by approximately $31 million, assuming the over-allotment option is fully exercised, which is expected to close on April 7, 2011.

Midway is continuing its development of its Garrington Cardium play and will also focus on developing the Beaverhill Lake oil zone in Swan Hills. The increased Syndicated Facility will provide additional funding for the Company's capital expenditure program and future growth.

Forward-looking Statements

This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, management focus, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. In particular, this press release contains forward-looking statements relating, but not limited to: Midway's future drilling program, expectations and assumptions concerning success of future exploration and development activities, the closing of the bought-deal financing and the anticipated uses of funds from the Syndicated Facility.

These forward-looking statements are based on various assumptions including: the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future drilling operations; anticipated timing and results of capital expenditures; estimates of future production and operating costs; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates, Midway's ability to obtain equipment in a timely manner to carry out development activities, impact of increasing competition, ability to market oil and natural gas successfully, the ability of Midway to access capital and the satisfaction of closing conditions of the bought-deal financing on the timing contemplated. While Midway considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the U.S. and globally; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Midway believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Information Regarding Midway

Midway Energy Ltd. is a public oil and gas exploration and development company, located in Calgary, Alberta with operations in Alberta and British Columbia. Midway currently trades on the Toronto Stock Exchange (TSX) under the Symbol "MEL".

Contact Information

  • Midway Energy Ltd.
    Scott Ratushny
    Chairman and Chief Executive Officer
    (403) 216-2705
    or
    Midway Energy Ltd.
    Doug Smith
    Chief Financial Officer
    (403) 216-2705