CALGARY, ALBERTA — (Marketwire) — 06/07/12 — Shoreline Energy Corp. (TSX: SEQ) (“Shoreline” or the “Company”) is pleased to announce that its Board of Directors has declared a Cdn $0.12 dividend per share in accordance with its Revised Quarterly Dividend Policy for holders of Shoreline Common Shares as follows;
Revised Quarterly Dividend Policy
Shoreline and its Board of Directors is pleased to announce an updated corporate Dividend Policy that reflects the Company–s status as a dividend paying, growth oriented exploration and production company. The revised Dividend Policy provides the Company with the financial flexibility required to adapt to ever changing commodity price environments and allows for sustainable growth.
The revised Quarterly Dividend Policy of Shoreline is to distribute to its common shareholders all funds surplus to the operating and capital expenditure needs as determined by the Board of Directors of the Company. The Company has set a target dividend payout ratio in respect of each financial year of not less than 25% and not greater than 65% of annual net free cash flow. The actual payout ratio is dependent on various factors including but not limited to:
Changes to target dividend payout ratio range
The target dividend payout ratio set out above is not to be changed without the prior written approval of the Board of Directors.
Long Term Sustainability
Shoreline expects that it will continue to pay a dividend on a quarterly basis. Any decision to pay dividends on the common shares will be made by the Board of Directors based on Shoreline–s projected cash flow from operating activities, earnings, financial requirements, commodity price forecasts, legal requirements and other conditions existing at such future times. Shoreline currently intends to designate all dividends to be “eligible dividends” for the purposes of the Income Tax Act (Canada) such that shareholders who are individuals will benefit from the enhanced gross-up and dividend tax credit mechanism under the Income Tax Act (Canada).
Shoreline has approximately 5,642,882 common shares outstanding, which trade on the TSX under the symbol SEQ.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Corporation–s plans and other aspects of the Corporation–s anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management–s assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,” “should,” “plan,” and similar expressions suggesting future outcomes, and include statements that actions, events or conditions “may,” “would,” “could,” or “will” be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation–s ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Note Regarding BOEs
The term barrel of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
Calgary Office
c/o Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403)767-9066
Toronto Office
Suite 103, 145 King Street West
Toronto, Ontario, M5H 1J8