CALGARY, March 7 /CNW/ - GEOCAN Energy Inc. (GEOCAN or the Company)
(TSX: GCA) announces that it has closed its previously announced sale of the
Lloydminster area heavy oil assets for $50.9 million, inclusive of closing
adjustments. The effective date for the Lloydminster area transaction is
February 1, 2008. The closing of the previously announced Carrot Creek asset
sale is scheduled for mid March.
The Company also announces that its board of directors has unanimously
approved a process to review strategic alternatives to maximize shareholder
value and has retained Tristone Capital Inc. to act as its exclusive financial
advisor to assist in exploring strategic alternatives. These alternatives may
include the sale of the Company, an amalgamation or reorganization or such
other transaction that are considered to be in the best interests of GEOCAN.
GEOCAN currently has production of approximately 1,000 BOE/d (95%
operated); split 37% light and medium oil and 63% natural gas. GEOCAN is
strategically focused within three core areas, namely, east central Alberta,
west central Alberta and northeastern British Columbia. GEOCAN holds
137,000 gross (88,132 net) undeveloped acres of land within its three core
areas and has estimated current tax pools of approximately $43 million. On
March 3, 2008 GEOCAN finalized its new $17 million revolving operating demand
loan facility with its existing lender. Upon closing the Carrot Creek
transaction, GEOCAN's debt and working capital deficiency is anticipated to be
approximately $3 million.
GEOCAN is an oil and gas company that explores for, develops and produces
crude oil and natural gas in British Columbia and Alberta. GEOCAN shares have
been publicly traded since 1998 and the Company has been listed on the Toronto
Stock Exchange under the symbol "GCA" since 2003. The Company has
55,945,239 common shares issued and outstanding. For further information
regarding GEOCAN please refer to SEDAR at (www.sedar.com) or the Company's
website at (www.geocan.com).
Advisory - Forward-looking Information
This press release may include certain forward-looking statements. These
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in the forward-looking statements. However, while management
believes these forward-looking statements to be reasonable, the reader cannot
be assured that these expectations will prove to be correct. The reader should
not unduly rely on these forward-looking statements as these statements speak
only as of the date hereof. Additional information about the Company can be
found on www.sedar.com.
Barrel of oil equivalent ("BOE") may be misleading, particularly if used
in isolation. A BOE conversion ratio for natural gas of 6 mcf :1 bbl is based
on an energy equivalency conversion method particularly applicable at the
burner tip and does not represent a value equivalency at the wellhead.
For further information:
For further information: Wayne Wadley, President and CEO, or Brad
Farris, VP Finance and CFO, GEOCAN Energy Inc., Phone (403) 261-3851, Fax
(403) 261-3834, Email firstname.lastname@example.org, or email@example.com, Website: