Shoreline Energy Corp.
TSX : SEQ

Shoreline Energy Corp.

November 01, 2013 08:11 ET

Shoreline Energy Corp. Closes Acceleration Resources Loan

CALGARY, ALBERTA--(Marketwired - Nov. 1, 2013) - Shoreline Energy Corp. (the "Company" or "Shoreline") (TSX:SEQ) is pleased to announce it has closed an upsized US$3,000,000 loan facility (the "New Facility") with Acceleration Resources ("Acceleration") as announced in the Company's press release of September 30, 2013 (the "September 30 Release"). A portion of the proceeds of the New Facility have been paid to Shoreline's primary lender, Alberta Treasury Branches ("ATB"), in partial prepayment of the Company's existing debt facility. As a result of this payment and of the New Facility, Shoreline is in full compliance with its covenants under the ATB facility.

The New Facility, which was made through Shoreline's wholly owned subsidiary Shoreline Energy Holdings II Inc. ("Shoreline Holdings"), is anticipated to be repaid before January 31, 2014.

In conjunction with the New Facility, Acceleration has been issued warrants to purchase 759,000 common shares of Shoreline at an exercise price of $2.50 per share which expire October 31, 2018.

As announced in the September 30 Release, Shoreline and Acceleration have agreed to negotiate definitive terms of a joint venture agreement pursuant to which the Company, Shoreline Holdings and Acceleration will jointly develop the Company's assets in the Wattenberg Field of Colorado (the "Joint Venture"). Under the proposed terms of the Joint Venture, Acceleration will have the right to (i) become 50% equal partner on all non-operated lease interests owned by Shoreline Holdings for payment of (a) all costs and expenses previously paid by Shoreline in acquiring such interests; and (b) all JIBs and AFEs associated thereto less an amount equal to 50% of all revenues and other proceeds of production paid (or owing to) Shoreline with respect to such interests; and (ii) up to 70% of the royalty interests owned by Shoreline Holdings for payment of Shoreline's original acquisition costs plus related expenses. The Joint Venture is expected to close on or before January 31, 2014.

Completion of the Joint Venture is subject to a number of customary conditions precedent, including completion of due diligence.

About Shoreline Energy

Investor Information

Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands and pays a quarterly dividend. The Common Shares are currently listed on the TSX under the trading symbol "SEQ" and the debentures under the trading symbol "SEQ.DB". Additional information regarding Shoreline is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.

Forward Looking and Cautionary Statements

This news release contains forward-looking statements relating to the terms, timing and completion of the Joint Venture. Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements are subject to a wide range of 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 commodities prices; currency fluctuations; imprecision of reserves 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; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.

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