3MV Energy Announces Results from the Annual and Special Meeting of Shareholders, Corporate Update, Adoption of New Stock Option Plan and Grants to Directors
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES./
CALGARY, Aug. 30, 2013 /CNW/ - 3MV Energy Corp. ("3MV" or the "Company") (TSXV: TMV) is pleased to announce that all matters set out in our management information circular dated July 29, 2013 for the 2013 Annual and Special Meeting of Shareholders held on August 29, 2013 (the "Meeting") were approved by shareholders. The detailed results of the vote are set out below:
|Director Nominee||Votes For||% For||Votes Withheld||% Withheld|
|Ronald B. Baba||21,875,795||99.93||%||15,203||0.07||%|
|James P. Boyle||21,860,295||99.86||%||30,703||0.14||%|
|Dallas C. Duce||21,860,295||99.86||%||30,703||0.14||%|
|Donald O. Fairholm||21,875,795||99.93||%||15,203||0.07||%|
|Appointment of the Auditor||Votes For||% For||Votes Withheld||% Withheld|
|KPMG LLP, Chartered Accountants||21,885,795||99.93||%||15,203||0.07||%|
|Approval of the Stock Option Plan||Votes For||% For||Votes Against||% Against|
|Proposed by management in the Circular||21,865,795||99.88||%||25,203||0.12||%|
As stated in early 2013, the Company acquired 53 sections of land in the Fiske area which has solidified its asset base and creates potential for further growth and expansion through the drill bit. The Company will continue to seek financing opportunities, asset acquisitions and/or dispositions including currently entertaining discussions and proceeding to privately offer its Fiske property for sale and joint ventures with the goal of repairing the balance sheet and repayment of trade payable and accounts payable debt. 3MV is also working to decrease its operating and G&A expenses among other costs to optimize operational margins and cash flow.
Adoption of New Stock Option Plan
The Company's board of directors also approved a new 20% fixed number stock option plan. Pursuant to the new option plan 3MV can grant up to 10,243,480 stock options. The Company will seek shareholder approval for the new option plan at its next annual shareholders meeting. Any options granted after the date hereof and prior to shareholder approval will also be subject to, and will not be exercisable until, shareholder approval.
3MV also announces the grant of 1,500,000 stock options to non-management directors at an exercise price of $0.15 per common share expiring on August 29, 2018.
The Company currently has 51,217,402 issued and outstanding common shares and accordingly can grant up to 10,243,480 stock options pursuant to its new fixed number stock option plan. Accordingly, the 1,500,000 options granted to non-management directors shall become effective and exercisable only upon any necessary shareholder approval having been obtained. Including the grant announced today, 3MV currently has 6,170,262 stock options outstanding.
The new stock option plan and the aforementioned stock option grants are subject to the approval of the TSX Venture Exchange.
3MV is an oil and gas exploration and development company with assets throughout west central Saskatchewan's Viking oil play.
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.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
Certain statements in this news release constitute forward-looking statements. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by 3MV. Although 3MV believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because 3MV 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect 3MV's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
The forward-looking statements contained in this document are made as of the date hereof and 3MV undertakes no obligation 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.
Oil and Gas Disclosure
For the purpose of calculating unit costs, natural gas volumes have been converted to a barrel of oil equivalent ("BOE") using six thousand cubic feet equal to one barrel unless otherwise stated. A BOE conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. BOEs may be misleading, particularly if used in isolation.
Net present value of future net revenue does not represent fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material.
This press release contains the terms "operating netbacks", "funds generated by operations", and "net debt", which do not have a standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures by other issuers. 3MV uses operating netbacks and funds generated by operations to analyze operating and financial performance. 3MV believes these benchmarks are key measures of profitability and overall sustainability for the Company. Both of these terms are commonly used in the oil and gas industry. Operating netbacks and funds generated by operations are not intended to represent operating profits nor should they be viewed as an alternative to cash flow provided by operating activities, net earnings (loss) or other measures of financial performance calculated in accordance with GAAP. Operating netbacks are determined by deducting royalties, operating costs and transportation from oil and gas revenue. Funds generated by operations are calculated as cash flows from operating activities excluding transaction costs less changes in non-cash working capital and share base payments.3MV uses net debt to assess the financial position and health of the Company. 3MV believes this benchmark is a key measure of financial leverage and displays a Company's ability to repay its debts when due. Net debt is calculated as current assets less current liabilities.
SOURCE 3MV Energy Inc.For further information:
CFO, VP Finance