CALGARY, Feb. 28, 2013 /CNW/ - Calvalley Petroleum Inc. ("Calvalley" or
the "Company") announces the preliminary results of its issuer bid to
purchase up to 15,000,000 of its outstanding Class A common voting
shares ("Shares") at a purchase price of $2.45 per Share (the
"Offer"). The Offer was open for acceptance until 2:00 pm (MST) on
February 27, 2013.
Approximately 42.7 million Shares were deposited and not withdrawn under
the Offer, and the Company intends to provide notice to the depositary
that it will take up and accept for payment the maximum 15,000,000
Shares offered to be purchased under the Offer. As the Offer was
oversubscribed, the number of Shares purchased from each validly
tendering shareholder, other than shareholders tendering "odd lots",
will be prorated. The Company expects that prorated shareholders will
have approximately 35% of their tendered Shares purchased under the
Offer. This proration factor is preliminary. Final results will be
determined following confirmation by the depositary and the Company of
the exact number of Shares validly tendered and not withdrawn. Such
confirmation is expected to occur on or about March 5, 2013 and the
Company will release the final proration factor at such time and
confirm the take up and payment of the Shares tendered on that basis.
Certificates representing Shares not purchased under the Offer,
including Shares not purchased due to proration, will be returned to
shareholders as soon as practicable.
The 15,000,000 Shares to be purchased represent approximately 15.9% of
the outstanding Shares. After giving effect to the Offer, Calvalley
will have 79,365,826 Shares issued and outstanding.
Jennings Capital Inc. acted as dealer manager in connection with the
Offer and financial advisor to Calvalley.
The full details of the Offer are described in the offer to purchase and
issuer bid circular of the Company dated January 22nd, 2013, as well as the related letter of transmittal and notice of
guaranteed delivery, copies of which were filed and are available on
SEDAR at www.sedar.com.
About Calvalley Petroleum Inc.
Calvalley is an international oil and gas company, with offices in
Calgary, Alberta, Canada, that operates its 50% working interest in
Block 9 of the Masila Basin, in The Republic of Yemen and its 100%
working interest in the Metema Block of the Blue Nile Basin, in The
Republic of Ethiopia.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements. All statements
other than statements of historical fact contained in this press
release are forward-looking statements. You can identify many of these
statements by looking for words such as "believes", "expects", "will",
"intends", "projects", "anticipates", "estimates", "continues" or
similar words or the negative thereof. There can be no assurance that
the plans, intentions or expectations upon which these forward-looking
statements are based will occur. Forward-looking statements are subject
to risks, uncertainties and assumptions, including, but not limited to,
those discussed elsewhere in this press release. There can be no
assurance that such expectations will prove to be correct. The
forward-looking statements contained herein are expressly qualified in
their entirety by this cautionary statement. The forward-looking
statements included in this press release are made as of the date of
this press release and Calvalley assumes no obligation to update or
revise them to reflect new events or circumstances except as expressly
required by applicable securities law.
SOURCE: Calvalley Petroleum Inc.
For further information:
email@example.com or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO