Shoreline Energy Corp.

March 07, 2011 08:30 ET

Shoreline Energy Corp. Announces Asset Acquisition

CALGARY, ALBERTA--(Marketwire - March 7, 2011) -

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Shoreline Energy Corp. (the "Company") is pleased to announce that it has entered into a binding asset purchase and sale agreement to acquire, from a global integrated energy company, certain crude oil and natural gas assets (the "Assets") located in the Peace River Arch area of northwestern Alberta and northeastern British Columbia. The total consideration payable by the Company for the Assets is approximately $28,500,000 subject to adjustment (the "Acquisition").

The Assets produce approximately 850 barrels of oil equivalent per day, from a number of stratigraphic intervals and a number of fields. The production is a combination of operated and non-operated production, with working interests ranging from fractional interests to 100%. The Acquisition contains over 150,000 gross acres of land, and ownership in key production infrastructure.

The Assets include the main producing fields of Balsam, Doe Creek, Pouce Coupe, and Progress, with total production weighted 79% natural gas, and 21% natural gas liquids and crude oil.

The Company has identified a number of oil development opportunities which will be actively pursued immediately upon closing. This development program will focus on drilling horizontal wells in existing producing oil pools during the next 12 months, increasing cash flow through production of light crude oil.

With success of the drilling program the company forecasts that its production will grow to 1,100 barrels of oil equivalent, achieving a nearly balanced oil to gas weighting. In addition to the oil development program the Company has identified a number of natural gas drilling opportunities which will be capitalized in a stronger gas price environment.

Reorganization

In addition to the Acquisition, the Company is pleased to announce the following:

  • The change of the Company's name from "Global Credit Pref Corp." to "Shoreline Energy Corp."
  • The change of the business of the Company to a Canadian junior crude oil and natural gas exploration and production company focused on long-term growth through a prudent exploration, development, production and acquisition program in the Western Canadian Sedimentary Basin.
  • Amendments to the articles of the Company to, among other things, remove the restrictions on the business of the Company; change the designation of the "Class A Shares" of the Company to "Common Shares"; amend the rights, privileges, restrictions and conditions attaching to the Common Shares; amend the rights, privileges, restrictions and conditions attaching to the Preferred Shares; remove restrictions on the liquidation, dissolution and winding up of the Company; and remove restrictions on the issuance of securities.
  • The appointment of a new management team led by Trevor Folk as President & CEO, Dan Grisdale as Chief Financial Officer and Shaun E. Alspach as Executive Vice President, Business Development.
  • The election of an experienced and diverse board of directors comprised of Peter Henry, Peter Shippen, Dean Schultz, Trevor Folk, Shaun Alspach and John Williams.

In addition, the Company's head office is now located at 400, 209 8th Avenue SW, Calgary, Alberta T2P 1B8.

Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the completion of the Acquisition, the anticipated impact of the Acquisition on the Company, and the potential exploration and development opportunities associated with the Acquisition. These statements are based on current expectations and assumptions, including, with respect to the completion of the Acquisition, the assumption that the Acquisition will be completed on the terms negotiated, or at all; with respect to the assets being acquired, the accuracy of reserve estimates and estimates and projections relating to production, costs and expenses, and health, safety and environmental risks; and with respect to the success of future drilling and development activities, the performance of existing wells, the performance of new wells, the successful application of technology, prevailing commodity prices and prevailing royalty regimes. The forward looking statements involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks include, but are not limited to the normal commercial risks that the Acquisition may not be completed on the terms negotiated, or at all, risks associated with the oil and natural gas industry in general (e.g., 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 production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations changes to existing laws and regulations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release and the Company undertakes no obligation 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.

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