CALGARY, July 11, 2012 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") announces that it has received
a notice of termination from Macquarie Capital Markets Canada Inc.
("Macquarie") terminating its obligations pursuant to the Underwriting
Agreement made effective June 20, 2012 (the "Underwriting Agreement"),
whereby Macquarie had agreed to purchase on a bought deal basis
15,000,000 subscription receipts at a price of $1.00 per subscription
receipt. The notice of termination received from Macquarie did not
provide the reason for Macquarie terminating its obligations under the
Underwriting Agreement. Management of PetroFrontier is of the view
that Macquarie did not have a valid legal reason to terminate the
Underwriting Agreement and PetroFrontier is currently reviewing it
options in this regard.
Pursuant to the recently announced joint venture between Statoil
Australia Oil and Gas AS ("Statoil") and PetroFrontier, each of the
parties has already contributed US$15 million to fund the 2012 capital
program. Management believes PetroFrontier has sufficient capital on
hand to fund operations throughout 2012. However, additional capital
will be required in order to fund 2013 operations including
PetroFrontier's remaining commitment of US$10 million under the Phase I
joint exploration program with Statoil. Management is currently
considering alternative sources of financing to replace some or all of
the funds that would have been raised pursuant to the Underwriting
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in the
exploration, acquisition and development of both conventional and
unconventional onshore petroleum assets in Australia's Southern
Georgina Basin. Founded in 2009, PetroFrontier is one of the first
companies to undertake onshore exploration in the Southern Georgina
Basin in Australia's Northern Territory. PetroFrontier's head office is
in Calgary, Alberta and its operations office is in Adelaide, South
Australia. PetroFrontier's common shares are listed on the TSX Venture
Exchange under the symbol "PFC".
This press release may contain forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of PetroFrontier, including, without limitation,
statements pertaining to the Corporation reviewing its options pursuant
to the Underwriting Agreement, future operations and alternative
sources of financing. All statements included herein, other than
statements of historical fact, are forward-looking information and such
information involves various risks and uncertainties. There can be no
assurance that such information will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in PetroFrontier's disclosure
documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this
release and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise them
to reflect new events or circumstances.
Neither the 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 PetroFrontier Corp.
For further information:
President and CEO
Manager, Investor Relations
Suite 320, 715 - 5 Ave. S.W.
Calgary, Alberta, Canada T2P 2X6
Telephone: (403) 718-0366
Toll Free: (877) 822-7280
Fax: (403) 718-3888