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CALGARY, April 4, 2012 /CNW/ - SilverWillow Energy Corporation ("SilverWillow") began operations today as a newly formed oil sands exploration and development company with assets in Alberta's Athabasca oil sands area. The company was formed as a result of a plan of arrangement (the "Arrangement") involving SilverBirch Energy Corporation, Teck Resources Limited ("Teck"), 8071667 Canada Inc. (the "Purchaser") and SilverWillow. The Arrangement involved the acquisition by the Purchaser (a wholly owned subsidiary of Teck) of all of SilverBirch's outstanding shares, other than those held by Teck. Pursuant to the Arrangement, the holders of common shares of SilverBirch ("SilverBirch Shares") received, for each SilverBirch Share held, cash consideration of $8.50 per share and one common share of SilverWillow (each a "SilverWillow Share").
"SilverWillow is a new company, but with assets and a management team drawn from SilverBirch, we are already familiar to many of our shareholders," said Howard Lutley, President and Chief Executive Officer of SilverWillow. "We are moving forward with a well-defined plan, which will initially focus on activities related to progressing our understanding of the Audet lands. Concurrently, we are exploring our remaining lands to add value and to pursue opportunities for further resource additions. Our team is confident in the potential in this asset base and we are excited to hit the ground running and bring our properties through the next stages of the exploration and development process."
SilverWillow is focused on exploring for, developing and ultimately producing hydrocarbon resources in the oil sands area of northern Alberta. The primary assets of SilverWillow include the in situ oil sands prospect situated on the Audet lands, the Birch Mountain lands and 57,600 net acres of additional exploration land.
The Audet lands, which comprise the two oil sands leases 418 and 271, are located 110 kilometres north-east of Fort McMurray, and approximately 40 kilometres north of Cenovus Energy Inc.'s proposed Telephone Lake project.
Conditional listing approval for the SilverWillow Shares issuable pursuant to the Arrangement has been received from the TSX Venture Exchange (the "TSX-V"). Provided that all of the TSX-V listing conditions are met, trading of the SilverWillow Shares on the TSX-V under the symbol 'SWE' is expected to commence at the open of the market on April 5, 2012 with the SilverBirch Shares being delisted from the TSX-V at the close of market on April 4, 2012.
About SilverWillow Energy
SilverWillow Energy Corporation is a Calgary, Alberta based pre-production oil sands company with a portfolio of exploration leases in Canada's Athabasca oil sands. To learn more, please visit www.swenergy.ca.
Advisory Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "plan", "exploring", "focus", "prospect", "expected" and similar expressions is intended to identify forward-looking information concerning: the potential of the SilverWillow asset base; the plans of SilverWillow for the Audet lands and the other assets owned by SilverWillow; the listing and trading of the SilverWillow Shares; and the delisting of the SilverBirch Shares.
The forward-looking information in this news release is based on certain key expectations and assumptions made by SilverWillow, including assumptions as to: the submission, in a timely manner, of regulatory and third party applications; the receipt in a timely manner, of regulatory and third party approvals; the timing and progress of work relating to SilverWillow's assets; SilverWillow's geological and engineering estimates; continuity of resource between core holes; future production levels; the regulatory framework with respect to royalties, taxes, environmental matters, resource recovery and securities matters in the jurisdiction in which SilverWillow will conduct its business; the geography of the areas in which SilverWillow will conduct exploration and development activities; the sufficiency of budgeted capital expenditures in carrying out planned activities; the accuracy of testing results and seismic data; the accuracy of resource estimates and the general continuance of current or, where applicable, assumed operational, regulatory and industry conditions; the anticipated timing and receipt of final listing approval from the TSX-V and the anticipated timing of the delisting of the SilverBirch Shares. Although SilverWillow believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because SilverWillow can give no assurance that it will prove to be correct.
The forward-looking information in this news release is subject to known and unknown risks and uncertainties and other factors which may cause actual results to differ materially from those expressed or implied in the forward-looking information. Such risks, uncertainties and factors include, among others: inability to secure necessary regulatory or other third party approvals; the early stage of development of SilverWillow and its assets and the nature of the exploration and development activities on such assets; difficulties encountered during the exploration for, delineation, development and production of bitumen; the need for additional time to satisfy the conditions of the TSX-V with respect to the listing of the SilverWillow Shares on the TSX-V or the conditions of the TSX-V with respect to the delisting of the SilverBirch Shares. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of SilverWillow are included in the Listing Application (Form 2B) of SilverWillow filed with the TSX-V, which will be filed with applicable securities regulatory authorities and may be accessed through the SEDAR website www.sedar.com.
The forward-looking information contained in this news release is made as of the date hereof and SilverWillow undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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
For further information:
please contact Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030.