Birchcliff Energy Ltd. ("Birchcliff") (TSX:BIR) today announced that it will pursue the sale of its oil and natural gas properties and related assets on the Charlie Lake Light Oil Resource Play located in the Peace River Arch of Alberta (the "Assets").
"The successful growth of our Montney/Doig Resource Play has resulted in us not allocating any significant capital to our Charlie Lake Light Oil Resource Play. Accordingly, we have chosen to seek potential purchasers for our Charlie Lake Light Oil Resource Play, which includes our highly skilled, multi-disciplinary team that has been managing these assets for years," said Jeff Tonken, President and Chief Executive Officer of Birchcliff. "We believe that a successful sale will allow us to become even more geographically focused, reduce our cost structure even further and become even more competitive in our industry, while improving our balance sheet. The sales process comes at a time when we have significant financial flexibility, which will allow us to consider only top value bid proposals."
Birchcliff has engaged a marketing agent to seek potential purchasers. Birchcliff expects that a comprehensive data room will be open at the end of April 2017 or in early May 2017 for interested parties who have executed a confidentiality agreement.
Birchcliff expects that any cash proceeds resulting from a completed transaction will be used to initially reduce indebtedness under Birchcliff's credit facilities, which will be subsequently redrawn as needed to fund Birchcliff's ongoing capital expenditure programs and for general corporate purposes.
There can be no assurance that any agreement or transaction will occur, or if a transaction is undertaken, as to its terms or timing. Birchcliff has not set a definitive schedule to complete the sales process and no decision on any particular transaction structure has been reached at this time. Birchcliff does not intend to make further announcements or disclose developments with respect to the sales process until the board of directors has approved a definitive transaction, unless otherwise required by applicable laws or Birchcliff otherwise determines that disclosure is appropriate.
Birchcliff is a Calgary, Alberta based intermediate oil and natural gas company with operations concentrated within its one core area, the Peace River Arch of Alberta. Birchcliff's common shares and cumulative redeemable preferred shares, Series A and Series C are listed for trading on the Toronto Stock Exchange under the symbols "BIR", "BIR.PR.A" and "BIR.PR.C", respectively.
SOURCE: Birchcliff Energy Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.