CALGARY, Sept. 2 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the
Company") (TSX: WIX) announces the closing of the previously announced
transaction selling substantially all of Winstar's Canadian assets to a
private Canadian company for cash consideration of $9.5 million, prior to
final adjustments. The non-brokered sale was effective September 1, 2009.
Further to this sale the Company expects to have at least $7.0 million in
positive working capital and, subject to well and third party mechanical
reliability, production from its Tunisian assets of approximately 2,000 boepd.
This sale is consistent with Winstar's corporate strategy to enhance
shareholder value by generating capital internally through ongoing cash flow
and the disposition of low rate of return non-core assets. Available capital
will be redeployed into higher rate of return development projects in Tunisia
for the remainder of 2009 and 2010 with the goal to maximize the Company's
high net back production for the lowest capital cost and risk.
The Company has numerous high impact exploration prospects in Tunisia,
Hungary and Romania. Winstar has made the strategic decision to seek joint
venture partners for two of these opportunities; namely, its extensive land
holdings at Torokkoppany and Igal in west central Hungary and its high
potential Ech Chouech Production Concession in southern Tunisia.
Winstar's Hungarian prospects at Torokkoppany and Igal can be viewed at
www.envoi.co.uk/actpro.htm. Winstar's Ech Chouech Concession prospect in
Tunisia can be viewed at
References herein to boe mean barrels of oil equivalent derived by
converting gas to oil in the ratio of 6,000 cubic feet (mcf) of gas to one
barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation.
A boe conversion ratio of 6 mcf: 1 bbl is based upon an energy conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
This press release contains certain forward-looking statements. These
statements relate to future events or future performance of the Company. When
used in this press release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "predict", "seek",
"propose", "expect", "potential", "continue", and similar expressions, are
intended to identify 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 such
forward-looking statements. Such statements reflect the Company's current
views with respect to certain events, and are subject to a number of risks,
uncertainties and assumptions. Many factors could cause Winstar's actual
results, performance, or achievements to materially differ from those
described in this press release. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those
described in other public disclosures made by the Company or this press
release as intended, planned, anticipated, believed, estimated, or expected.
Specific forward-looking statements in this press release include, among
others, statements pertaining to the following: factors upon which Winstar
will decide whether or not to undertake a specific course of action; and
estimated volumes and timing of future production; business plans for
drilling, exploration and development; and other expectations, beliefs, plans,
goals, objectives, assumptions, information and statements about possible
future events, conditions, results of operations or performance. The risks to
which the Company is subject include those of the oil and gas industry in
general, including operational risks in exploring for, developing and
producing crude oil and natural gas; risks and uncertainties involving geology
of oil and gas deposits; volatility in global market prices for oil and
natural gas; general economic conditions; competition; liabilities and risks,
including environmental liability and risks, inherent in oil and gas
operations; uncertainties as to the availability and cost of financing and
changes in capital markets; alternatives to and changing demand for petroleum
products; and changes in legislation and the regulatory environment, including
uncertainties with respect to the Kyoto Protocol. Furthermore, statements
relating to "reserves" or "resources" are deemed to be forward-looking
statements, as they involve the implied assessment, based on certain estimates
and assumptions that the resources and reserves described can be produced
profitably in the future. The forward-looking statements contained in this
press release are expressly qualified in their entirety by this cautionary
statement. These statements speak only as of the date of this press release.
The Company does not intend and does not assume any obligation, to update
these forward-looking statements to reflect new information, subsequent events
or otherwise, except as required by law.
Winstar Resources Ltd. is a Calgary-based junior oil and gas Company,
which further to this sale will explore for, develop, produce and sell crude
oil, natural gas liquids and natural gas in Tunisia, Hungary and Romania.
Winstar's common shares trade on the Toronto Stock Exchange under the symbol
For further information:
For further information: Winstar Resources Ltd., Mr. David Monachello,
President, (403) 513-4200, Email: firstname.lastname@example.org; Winstar Resources
Ltd., Mr. Charles de Mestral, Chief Executive Officer, Toll-free (Canada and
USA): 1-800-875-1217, or +41 22 949 10 40 (Note: Mr. de Mestral is based in
Europe, in a time zone eight hours ahead of Calgary time), Email: