CALGARY, Sept. 4, 2019
/CNW/ - Cuda Oil and Gas Inc. ("Cuda" or the
"Company") (TSXV: CUDA) is pleased to announce that it has
closed Asset Purchase Agreements (the "APAs") to
sell all of its oil and gas assets and related liabilities located
in the Province of Quebec
("Quebec") at a total
transaction value of CAD $10.59
million, including cash consideration at closing of CAD
$4.29 million, to arm's-length
purchasers (the "Transaction").
Highlights:
- Cuda has disposed of all of its petroleum and natural gas
rights in Quebec (the
"Assets") which includes all land permits, licenses and
production rights and interests in the Province as well as all
tangible assets including drilling and related equipment associated
with the Assets;
- The purchasers assumed all environmental liabilities, including
abandonment and reclamation obligations, associated with the Assets
in Quebec, estimated by the
parties at CAD $3.2 million;
- The purchasers paid CAD $4.29
million to Cuda in cash consideration; and
- Cuda has been released and discharged from a pending CAD
$3.1 million claim associated with
the exercise of dissent rights in connection with the plan of
arrangement of the Company completed August
15, 2018.
KES 7 Capital Inc. ("KES 7") acted as a financial advisor
to the Company. Pursuant to TSXV requirements, KES 7 has
confirmed that it is an arm's-length party to Cuda and the
purchasers.
Glenn Dawson, President and Chief
Executive Officer of Cuda stated: "This is a significant
transaction for Cuda shareholders in its magnitude and strategic
creation of a pure play company in the Powder River Basin which has
been described as the 'Permian of the Rockies'.
"Moving forward, Cuda will focus on development of the Company's
high netback conventional light oil assets and Secondary Recovery
Miscible Gas Flood in Converse County,
Wyoming. Cuda's contiguous Powder
River Basin lands contain multiple defined opportunities to
access and develop low risk proven conventional reservoirs. We are
excited about the opportunity in Wyoming and we look forward to updating
investors on our progress shortly."
In addition, Cuda announces that it has retained Independent
Trading Group ("ITG") to provide market making services in
accordance with TSX Venture Exchange policies.
ITG will trade the securities of the Company on the TSX-V for
the purposes of maintaining an orderly market. In consideration of
the services provided by ITG, the Company will pay ITG a monthly
cash fee of $5,000 for a minimum
term of three months, and renewable thereafter. Cuda and ITG are
unrelated and unaffiliated entities. ITG will not receive shares or
options as compensation. The capital used for market making will be
provided by ITG.
About Cuda Oil and Gas Inc.
Cuda Oil and Gas Inc. is engaged in the business of exploring
for, developing and producing oil and natural gas, and acquiring
oil and natural gas properties across North America. The Cuda
management team has worked closely together for over 20 years in
both private and public company environments and has an established
track record of delivering strong shareholder returns. Cuda
will continue to implement its proven strategy of exploring,
acquiring, and exploiting with a long-term focus on large, light
oil resource-based assets across North
America including significant operational experience in the
United States. The Cuda management team brings a full
spectrum of geotechnical, engineering, negotiating and financial
experience to its investment decisions.
Forward-Looking Information
This news release contains forward-looking information. All
statements other than statements of historical fact included in
this release are forward-looking statements that involve various
risks and uncertainties and are based on forecasts of future
operational or financial results, estimates of amounts not yet
determinable and assumptions of management. In particular, this
news release includes forward-looking information relating to the
Transaction, the impact of the Transaction on Cuda and its results
and development plans; the Company pro forma the Transaction; the
estimated environmental liabilities, including abandonment and
reclamation obligaitons; and the anticipated benefits of the
Transaction; the existence and performance of resource and reserve
opportunities on the Company's lands and related lands; and
activity levels in the Company's core areas. Risk factors
that could prevent forward-looking statements from being realized
include market conditions, third party and regulatory approvals,
ongoing permitting requirements, the actual results of current
exploration and development activities, operational risks, risks
associated with drilling and completions, uncertainty of geological
and technical data, conclusions of economic evaluations and changes
in project parameters as plans continue to be refined as well as
future oil and gas prices. Although Cuda has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. The
Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE Cuda Oil and Gas Incorporated
