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TSX-V Symbol "AEC"
CALGARY, Oct. 20 /CNW/ - Action Energy Inc. ("Action" or the "Company") announces that it has received a notice from National Bank of Canada ("National Bank") demanding payment of amounts owed to it pursuant to loans and advances made to Action by National Bank pursuant to certain credit facilities (the "Credit Facilities") together with any accrued interest and other legal fees or charges. As at October 19, 2009, National Bank is owed approximately $31.6 million pursuant to the Credit Facilities. National Bank is demanding payment in full by the close of business on October 29, 2009.
Action continues to work with Michael A. Steele of Steele Consulting Partnership and Avonlea Ventures Inc. to establish a restructuring plan to address debt issues and consider other strategic alternatives.
Action Energy Inc. is a publicly traded Calgary, Alberta based junior oil and natural gas exploration and production company with operations concentrated in core areas in southern Saskatchewan and central and southern Alberta.
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FORWARD LOOKING STATEMENTS:
This press release may contain forward-looking statements including expectations of future production, funds flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and natural gas industry (e.g., the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, 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 estimates and projections relating to production, costs and expenses, and health, safety and environmental risks. Additional information on these and other factors that could affect Action's operations or financial results are included in Action's reports on file with Canadian securities regulatory authorities.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking statements. The actual results, performance or achievement of Action could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits that Action will derive therefrom. Action disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Action Energy Inc.
For further information: For further information: Roger C.W. Tang, President and Chief Executive Officer, Action Energy Inc.; ACTION ENERGY INC., Suite 800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Phone: (403) 264-1112, Fax: (403) 264-1116, E-mail: email@example.com, Website: www.action-energy.com