PRD Energy Inc.
TSX VENTURE : PRD

PRD Energy Inc.

March 12, 2012 06:00 ET

PRD Energy Announces Sale of Northwest Territory Assets

CALGARY, ALBERTA--(Marketwire - March 12, 2012) - PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announces that it has sold its interests in three significant discovery licenses covering approximately 2,000 acres in the Northwest Territories (the "NWT Assets").

The NWT Assets are not the focus of further development by PRD given the decline in North American natural gas prices has lowered our economic outlook for the assets, the timeline to achieving commercial production is unknown, the assets are non-operated with a minority position only (10.88%) and are located outside our regions of interest, principally Europe, where we have a 100% interest in over 266,300 acres on previously producing lands and with ready access to markets.

The purchase price is approximately $1,050,000 which was paid in full by applying the purchase price against the outstanding capital and expense charges owing by the Company in respect of the NWT Assets. In addition, the purchaser assumed all past, present and future obligations of the Company in respect of the NWT Assets. It is expected that the Company's exploration and evaluation assets will be written down to reflect this transaction. Sayer Energy Advisors acted as advisor to PRD on the transaction.

PRD plans to continue consolidating acreage, and negotiating with major operators, in its regions of interest while it considers options to begin operations in Germany during 2012.

About PRD Energy

PRD Energy Inc. is a Calgary based oil and gas company engaged in the exploration, development and acquisition of, natural gas and crude oil, principally in Europe. PRD Energy's common shares are listed on the TSX Venture Exchange with the symbol "PRD".

Forward looking information

This news release contains forward-looking information relating to write down of the Company's exploration and evaluation assets, future plans for the Company's business and operations, and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability to operate in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with instability of the economic and political environments in which the Company operates or owns interests, 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, the inability to settle the definitive terms of the farmout arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

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

  • PRD Energy Inc.
    Michael Greenwood
    Chairman and Chief Executive Officer
    (403) 234-0501
    (403) 234-0511 (FAX)

    PRD Energy Inc.
    Mark Hornett
    President and Chief Operating Officer
    (403) 234-0501
    (403) 234-0511 (FAX)

    PRD Energy Inc.
    Jeff Scott
    Vice President, Finance
    (403) 234-0501
    (403) 234-0511 (FAX)