Wilmington Capital Management Inc.

Wilmington Capital Management Inc.

October 26, 2011 20:00 ET

Wilmington Announces Acquisition of Interest in Assets in the Shackleton Field in Saskatchewan

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2011) - Wilmington Capital Management Inc. ("Wilmington") (TSX:WCM.A)(TSX:WCM.B) announced today that through a limited partnership in which Wilmington has an interest (the "Partnership") it has acquired (the "Acquisition") a 59% indirect interest in a 100% working interest in certain petroleum and gas assets in the Shackleton Field in Saskatchewan and related assets (the "Assets"). The aggregate cost of the Assets, including closing costs, will amount to approximately $19.8 million and is funded by a combination of cash and debt. Wilmington's share of the cash consideration to complete the Acquisition is $6,215,000 which is being funded by providing cash for subscription units in the Partnership. The remaining 40% indirect interest will be acquired by four other investors in equal amounts and their share of the cash consideration to complete the Acquisition is $4,285,000 which is being funded by providing cash for subscription units in the Partnership.

In connection with the Acquisition, the Partnership has also entered into a credit facility (the "Credit Facility") with a Canadian bank in the amount of $9,000,000 of which $8,500,000 was drawn to fund the Acquisition. The Credit Facility is secured by the Assets.

The Assets will be professionally managed by Airwell Services 2011 Ltd. (the "Manager"), an entity whose purpose is to provide management services to the Partnership. Wilmington has a 51% direct interest in the Manager. The remaining 49% interest is held by another entity.

Wilmington believes the Acquisition is in keeping with its new strategic plan which broadens Wilmington's investment strategy to include selective investments in the energy sector in addition to the real estate sector.

Forward-Looking Statements

This press release contains forward looking statements. More particularly, this press release contains statements concerning the closing of the Acquisition and the ongoing management of the Assets. Although Wilmington believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Wilmington can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward looking statements contained in this press release are made as of the date hereof and Wilmington undertakes no obligations 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.

Reference should also be made to the most recent annual information form for a description of the major risk factors.

Contact Information

  • Wilmington Capital Management Inc.
    Joseph F. Killi
    President and CEO
    (403) 800-0869