CALGARY, Dec. 11, 2012 /CNW/ - Pinecrest Energy Inc. (TSX-V: PRY) ("Pinecrest") announces the termination of the arrangement agreement dated November 20, 2012 (the "Arrangement Agreement") between it and Spartan Oil Corp. ("Spartan"). Pinecrest has received the $12.5 million break fee payable pursuant to the Arrangement Agreement.
Pinecrest will continue to pursue opportunities to enhance shareholder growth through strategic acquisitions and implementation of its waterflooding program, as previously announced. The combination of Pinecrest's large drilling inventory, industry leading production netback, improving capital efficiencies and attenuated corporate decline rate will drive the growth profile of Pinecrest for the foreseeable future.
Pinecrest is engaged in the acquisition and exploration for and development and production of oil and natural gas in Western Canada. Pinecrest has a significant position in the emerging, light oil Slave Point carbonate resource play focused in the greater Red Earth area of north-central Alberta. The common shares of Pinecrest are listed on the TSXV under the symbol "PRY".
Forward-Looking Statement Advisory
The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. In particular, forward looking statements in this press release includes, but is not limited to: the intent of Pinecrest to pursue opportunities to enhance shareholder growth through strategic acquisitions and implementation of its waterflooding program and Pinecrest's expectations that the attributes of its assets and operations will drive the growth profile of the Pinecrest. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Pinecrest's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves. Pinecrest's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Pinecrest will derive from them. Except as required by law, Pinecrest undertakes no obligation to publicly update or revise any forward-looking statements.
Many of the risks and uncertainties described above and additional risk factors are described in Pinecrest's Annual Information Form which is available at www.sedar.com and www.pinecrestenergy.com. Readers are also referred to risk factors described in other documents Pinecrest files with Canadian securities authorities.
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: Pinecrest Energy Inc.
For further information:
Pinecrest Energy Inc.
President and CEO
Vice President, Finance and CFO
Tel: (403) 817-2550
Fax: (403) 817-2599