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TSXV Trading Symbol: SWE
CALGARY,
July 3, 2014 /CNW/ - SilverWillow
Energy Corporation ("SilverWillow" or the "Corporation") today
announces that its Board of Directors has approved a reduction in
staffing levels to align human resources with current levels of
activity. SilverWillow will also take further steps to reduce
general and administrative costs; however, the current executive
officers of the Corporation will remain in their existing
positions. It is anticipated that these measures will allow the
Corporation to continue operations to the end of 2015 with current
cash resources.
In March of 2014 SilverWillow announced that its
Board of Directors had commenced a process to consider strategic
and financial alternatives available to the Corporation with the
objective of enhancing shareholder value. That process is
ongoing and the Corporation cautions that there are no assurances
that the process will result in a transaction, or if a transaction
is undertaken, the terms or timing of such a transaction.
In the meantime, the Corporation will continue
to address regulatory issues related to its 12,000 barrel per day
Audet Steam Assisted Gravity Drainage ("SAGD") project resulting
from the Alberta Energy Regulator's deferral of certain projects in
the designated shallow SAGD area. The Corporation will also examine
ways to advance the Corporation's Birch Mountains oil sands leases
which have approvals in place for an exploration drilling
program.
For further information regarding SilverWillow's
business and operations please see SilverWillow's Management
Discussion and Analysis for the period ended March 31, 2014 which was filed on SEDAR at
www.sedar.com and the Corporation's website at www.swenergy.ca.
About SilverWillow Energy
SilverWillow Energy Corporation is a
Calgary, Alberta based oil sands
exploration and development company, with a portfolio of
exploration leases in Canada's
Athabasca oil sands. To
learn more, please visit www.swenergy.ca.
FORWARD-LOOKING INFORMATION: This news
release contains "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. The forward-looking information in
this news release relates, but is not limited to, statements with
respect to the Corporation's plans to reduce staffing levels and
reduce expenses, statements regarding the ability of the
Corporation to maintain cash resources until the end of 2015,
statements regarding the conduct of the Corporation's strategic
review process and the possibility of a transaction arising
therefrom, as well as statements relating to the Corporation's
plans to advance the development of the Audet SAGD project and to
prepare for exploration at the Birch Mountains oil sand
leases.
The forward-looking information set out in
this news release, is based on certain expectations and assumptions
regarding, among other things, the Corporation's ability to reduce
expenses to an appropriate level as a result of the Corporation's
efforts, the absence of unexpected expenses which provide a further
drain on the Corporation's cash resources, the ability of the
Independent Committee to identify appropriate transactions to
enhance shareholder value; the availability of counterparties with
whom the Corporation can conduct a transaction; the ongoing conduct
of the exploration and development of the Corporation's projects
and properties; the ability of the Corporation to obtain required
regulatory approval for the development of its projects; the
ability of the Corporation to raise capital to fund the development
of the projects; the geography of the areas in which SilverWillow
will be exploring; and the sufficiency of budgeted capital
expenditures in carrying out planned activities. These
expectations and assumptions are based on certain factors and
events that are not within the control of SilverWillow and there is
no assurance they will prove to be correct.
Forward-looking information is subject to
known and unknown risks and uncertainties and other factors which
may cause actual results, levels of activity and achievements to
differ materially from those expressed or implied in such
forward-looking information. Such risks, uncertainties and
factors include, among others, the risk that unexpected expense
could arise which cause the Corporation's cash resources be
depleted prior to the end of 2015, the risk that the Independent
Committee and the Corporation are not able to identify an
appropriate transaction to enhance shareholder value; the risk that
new regulatory requirements may prevent the development of the
Corporation's projects; the risk that, even if new regulatory
requirements do not restrict the development of the Corporation's
projects, regulatory approvals in respect of the projects will not
be received in the timeframe or on the terms expected or at all;
and the general risks associated with exploring for, developing and
producing bitumen. Additional risks relating to the business and
operations of SilverWillow are set forth in the Corporation's
annual information form for the year ended December 31, 2013 and in its most recent
Management's Discussion and Analysis, which are filed under the
Corporation's profile on SEDAR at www.sedar.com.
SilverWillow undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change except as required by
law. The reader is cautioned not to place undue reliance on
forward looking information.
NEITHER THE 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
SOURCE SilverWillow Energy Corporation