Shoreline Energy Corp.
TSX : SEQ

Shoreline Energy Corp.

August 28, 2012 19:13 ET

Shoreline Energy Corp. Completes Previously Announced $17.0 Million Public Offering of Convertible Debentures

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2012) -

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Shoreline Energy Corp. (the "Company") (TSX:SEQ) today announced that it has closed its previously announced public offering (the "Offering") of 9.25% convertible unsecured subordinated debentures (the "Debentures") for gross proceeds of $17.0 million. The Debentures were offered for sale to the public by Macquarie Private Wealth Inc. (the "Agent") on a commercially reasonable efforts basis.

The net proceeds of the Offering will initially be used to reduce bank indebtedness and accelerate the Company's oil development program in the Peace River Arch area of north west Alberta.

The Agent was paid a fee of 6% of the gross proceeds of the Offering and was granted irrevocable and non-transferable warrants entitling the Agent to purchase a principal amount of Debentures equal to 6% of the gross proceeds of the Offering (the "Agent's Warrants"). The Agent's Warrants will be exercisable at an exercise price of $1,000 per $1,000 principal amount of Debentures for a period of eighteen months following closing.

The Offering was made by way of a short form prospectus dated July 26, 2012, which is accessible on SEDAR at www.sedar.com.

The Debentures will be listed for trading on the Toronto Stock Exchange on August 29, 2012.

Investor Information

Currently, Shoreline has outstanding 5,739,382 Common Shares, 5,592,032 Common Share purchase warrants and 383,000 options to acquire Common Shares. Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Company's common shares are currently listed on the TSX under the trading symbol "SEQ." Additional information regarding Shoreline is available under the Company's profile at www.sedar.com or at the Company's website, www.shorelineenergy.ca.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions and in particular include those statements relating to the use of proceeds for the Offering. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, oil and gas production; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or dispositions; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. In particular, drilling plans, on-production dates and production continuity are particularly subject to uncertainties and uncontrollable events such as surface access, rig availability, equipment availability, weather conditions, changes in geological interpretation, and other factors. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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