Painted Pony Petroleum Ltd.
TSX : PPY

Painted Pony Petroleum Ltd.

July 30, 2014 17:29 ET

Painted Pony Announces Closing of $100 Million Disposition of Saskatchewan Assets

CALGARY, ALBERTA--(Marketwired - July 30, 2014) -

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX:PPY) is pleased to announce that, further to its press release dated July 7, 2014, the Company has closed the sale of its southeast Saskatchewan assets (the "Transaction"), which has an effective date of June 1, 2014, for a total cash consideration of $100 million plus interim adjustments. Painted Pony is now a highly focused Montney natural gas and natural gas liquids producer, concentrating on unlocking the value within its British Columbia Montney properties. Following the closing of the Transaction on July, 30, 2014, Painted Pony has $53 million of cash and is undrawn on its $150 million credit facility, leaving the Company well-capitalized to execute upon its Montney development plan. Painted Pony is currently reviewing its 2014 and 2015 capital expenditure program and opportunities to accelerate its Montney initiatives with proceeds from the Transaction.

Cormark Securities Inc. and FirstEnergy Capital Corp. acted as financial advisors to Painted Pony in respect of the Transaction.

Painted Pony is a Canadian natural gas exploration company that trades on the Toronto Stock Exchange under the symbol "PPY".

Advisory

Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements, which are based on numerous assumptions, including, but not limited to: (i) drilling success; (ii) production; (iii) future capital expenditures;(iv) accuracy of reserves and resources estimates; (v) cash flows from operating activities; and (vi) receipt of regulatory approvals. In addition, and without limiting the generality of the foregoing, the key assumptions underlying the forward-looking statements contained herein include the following: (i) commodity prices will be volatile, and natural gas prices will remain low, throughout 2014; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (iv) Painted Pony will have sufficient financial resources with which to conduct the capital program; and (v) the current tax and regulatory regime will remain substantially unchanged. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

Certain information regarding Painted Pony set forth in this document, including statements regarding Painted Pony's future operational plans, may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Painted Pony's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Painted Pony's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in its Management's Discussion and Analysis for the year ended December 31, 2013, and its Annual Information Form for the year ended December 31, 2013 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).

The forward-looking statements contained in this document are made as at the date of this news release and Painted Pony 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.

Contact Information

  • Painted Pony Petroleum Ltd.
    Patrick R. Ward
    President & CEO
    (403) 475-0440
    (403) 238-1487 (FAX)

    Painted Pony Petroleum Ltd.
    John H. Van de Pol
    Vice President, Finance & CFO
    (403) 475-0440
    (403) 238-1487 (FAX)
    www.paintedpony.ca