/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES./
CALGARY, Sept. 23, 2012 /CNW/ - 3MV Energy Corp. ("3MV" or the "Company") (TSXV: TMV) announces that the Company's lender under its secured
subordinated credit facility has made a demand on the Company for
repayment of all indebtedness under such facility, which is currently
in the amount of $2 MM plus any unpaid accrued interest, by October 19,
2012. The demand is due to the Company being in breach of certain
covenants under the facilities as a result of the Company's current
working capital deficiency.
Management of 3MV is working with its lenders to come up with a plan to
repay the indebtedness under the facilities.
3MV has reduced head office staff and corresponding G&A expenses for
anticipated savings of approximately $50 thousand per month.
3MV also announces it has entered into a farm-out agreement with 1696704
Alberta Ltd. ("FarmCo") to drill two wells on 3MV's Fiske property,
with FarmCo funding 100% of costs to completion to earn 75% interest
subject to existing royalties. FarmCo is a single purpose corporation
formed by 3MV to raise $2 MM to finance the lease preserving wells on
the Fiske property. Upon 3MV completing a further $3.75 MM financing
3MV has the right to exchange 3MV shares and warrants for FarmCo shares
3MV intends to focus its drilling and production efforts on its highly
productive Fiske light oil discovery for the remainder of 2012 and into
2013. With over 34 net sections of land subject to a farm out agreement
(of which the Corporation has earned and participated in 2.65 net
sections) and another section (crown lease) owned by 3MV Energy, and a
recent 19.9 km² 3D seismic program, 3MV Energy has identified and
licensed 17 future drilling locations, eight of which the Corporation
considers to be infill locations. The Corporation's recent success in
the play, with three wells producing over 100 boe/d during the first 30
days of production, has led to significant reserves additions in the
area and 3MV Energy intends to build off that momentum as quickly as is
practicable with additional capital raised in the upcoming periods.
3MV is an oil and gas exploration and development company with assets
throughout west central Saskatchewan's Viking oil play.
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
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.
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.
SOURCE: 3MV Energy Inc.
For further information:
President & CEO
CFO, VP Finance