Wrangler West Updates Credit Facility, Announces Strategic Alternatives Process
CALGARY, Sept. 3, 2013 /CNW/ - Wrangler West Energy Corp. ("Wrangler West", the "Company") (TSX-V "WX") provides the following corporate information updates.
The Company announces an amendment to the Company's revolving operating demand loan agreement ("Credit Facility") effective September 3, 2013 with Canadian Western Bank (the "lender") in the amount of $4.9 million with a monthly reduction of $100,000 beginning September 26, 2013 and a maturity date of December 31, 2013. The amended Credit Facility bears annual interest calculated at prime plus 2.5 percent. The amendment to the Credit Facility was approved by Wrangler West's Board of Directors ("Board") and the Company expects to use the Credit Facility to fund its ongoing operations and working capital deficiency. The lender cancelled the non-revolving acquisition/development demand loan portion of the previous Credit Facility agreement.
The Company has initiated a process to identify, examine and consider a range of strategic alternatives with a view to enhancing shareholder value (the "process"). Strategic alternatives may include, but are not limited to, a potential sale of all, or a material portion of, the Company's assets; a joint venture, either in one transaction or in a series of transactions; the outright sale of the Company; or a merger or other strategic transaction involving Wrangler West and a third party.
The Board believes the Company's shares trade at a discount to the value of the underlying assets, especially given its concentrated property and production base, prospective horizontal light oil drilling inventory and significant tax pools. The Board has established a Special Committee comprised of independent directors of the Company to oversee the process and has retained Sayer Energy Advisors to assist the Special Committee and the Board.
Wrangler West does not intend to disclose developments with respect to the process unless, and until, the Board has approved a specific transaction or otherwise determines disclosure is necessary in accordance with applicable law. The Company cautions there are no assurances or guarantees the process will result in a transaction; or, in the event a transaction is undertaken, there are no assurances or guarantees regarding the terms or timing of any such transaction nor the impact any potential transaction might have on the Company's financial position. The Company has not set a definitive schedule to complete the process. Subject to the outcome of the process, the Company intends to continue to focus on maintaining production operations.
This news release may contain forward-looking statements ("FLS") related to potential new crude oil and natural gas drilling, tie-ins, ongoing production operations, sources and use of capital, asset purchases or dispositions, expected future operations and possible strategic alternatives. Although Wrangler West believes the expectations reflected in FLS are reasonable, undue reliance should not be placed on FLS because the Company can give no assurance they will prove correct. FLS address future events and conditions and, by their very nature, involve inherent risks and uncertainties. A more detailed discussion of FLS is provided in Wrangler West's Management's Discussion and Analysis for the period ended June 30, 2013 and the year ended December 31, 2012 which is filed on SEDAR (www.sedar.com). The FLS contained in this news release are made as of the date hereof. Unless so required by applicable securities laws, Wrangler West undertakes no obligation to update publicly or revise any FLS or information, whether as a result of new information, future events or otherwise.
Wrangler West is a Canadian junior crude oil and natural gas producer which explores for and develops natural gas and crude oil production assets in the Province of Alberta. Since inception, the Company's mandate has been to use the drill bit to add shareholder value. Wrangler West intends to reinvest funds flow from operations and other available capital to protect current, and add future, value. Wrangler West common shares trade on the TSX Venture Exchange under the symbol "WX".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Wrangler West Energy Corp.For further information:
Wrangler West Energy Corp.
Steven F. Johnson
President and Chief Executive Officer
telephone: (403) 290-6800