Vecta Energy Corporation

Vecta Energy Corporation

May 29, 2012 14:32 ET

Vecta Energy Corporation Files First Quarter Report and Provides Update

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - Vecta Energy Corporation (TSX VENTURE:VER) has filed its first quarter results and is please to report a modest profit from operations. Revenues of $153.500 were slightly below the previous year quarter but expenses were considerably lower, resulting in earnings from operations of $43,500. In addition, the Company recorded a gain on the sale of assets of $100,000 thus bringing the gain for the quarter to $143,500.

Vecta has an overriding royalty interest in two significant gas/liquids wells in the Harmattan area of west central Alberta and a small working interest in two gas/liquids wells in the Brewster area. It also has other minor producing interests in British Columbia. The income from these properties exceeds the Company's ongoing operating and administrative expenses so modest progress is being made on reducing outstanding liabilities. The Company sold its only remaining 320 acre working interest in the Harmattan area and the proceeds were dedicated to reduction of outstanding liabilities.

Vecta wishes to advise that it has entered into discussions with a large financial corporation to undertake a restructuring of its activities. New financing will be required to achieve such a restructuring and in view of the current market situation it may take some time to accomplish. As a consequence, the Company is continuing to seek other alternatives in the event the restructuring is unreasonably delayed.

The Directors holding the Company's Secured Loans have agreed to extend the maturity date and defer interest accruals to October 31, 2012. Two independent Secured Loan holders did not agree to the extension of the maturity date but indicate that they plan no action to seek repayment at the present time.

The Company also advises that it has relocated its offices to 2200, 300 - 5 Ave SW, Calgary, T2P 3C4. Telephone and email contact information remain unchanged.

To receive company news releases via e-mail, please advise and specify "Vecta Press Releases" in the subject line.

Neither 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

  • Vecta Energy Corporation
    Thomas D. Coffman
    (403) 265-7711