CALGARY, ALBERTA — (Marketwire) — 08/14/12 — Shoreline Energy Corp. (“Shoreline” or the “Company”) (TSX: SEQ) announced today its second quarter 2012 financial and operating results. A complete copy of the Company–s financial statements along with management–s discussion and analysis may be obtained at or on the Company–s website at
Operational Update
The Corporation has identified and made plans to drill up to 15 light sweet crude oil wells over the course of 2012 and 2013, inclusive of 3.0 (2.3 net) wells drilled and completed in the first and second fiscal quarters of 2012. Two oil wells are licensed and surface locations constructed on Shoreline–s Progress Charlie Lake horizontal play, with spud expected mid to late August. Six additional Montney and Charlie Lake light oil tests are surveyed and ready to license, with spud expected late August on the Montney plays.
During the quarter, approximately 40 boe/d of non-core and non-economic gas production was shut in. No material reserves were associated with this production. An additional 80 boe/d of non operated gas was shut in on July 1, 2012.
Financing Update
On July 31, 2012 the Company filed a final short form prospectus in connection with a public offering of not less than $12 million and not more than $17 million aggregate principal amount of convertible unsecured subordinated debentures at a price of $1,000 per debenture. The Debentures are being offered for sale by Macquarie Private Wealth Inc. on a commercially reasonable efforts basis.
All of the net proceeds of the Offering will initially be used by the Corporation to reduce outstanding indebtedness, which will be redrawn and applied to fund the Company–s capital expenditure program. Depending on the size of the offering at closing, the Company intends to drill between 4 and 6.4 net wells in the balance of 2012.
Guidance
The Company is well positioned to continue to deliver strong growth in its production, cash flow and reserves over the balance of 2012. The Company anticipates exiting 2012 with a production rate of approximately 2,180 boe/d (37% oil and NGL–s). This expanded budget is fully funded through cash flow and funds available from its credit facility and debenture financing.
Investor Information
Currently, Shoreline has 5,659,438 common shares outstanding. Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil and gas reserves and production on its current lands, as well as through a quarterly dividend. The Corporation–s common shares are currently listed on the TSX under the trading symbol “SEQ.” Additional information regarding Shoreline is available under the Corporation–s profile at or at the Corporation–s website, .
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.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
(403) 398-4070
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
(403) 398-4075
Shoreline Energy Corp.
Mr. Daniel Grisdale
Chief Financial Officer
(403) 398-4080
Shoreline Energy Corp.
Calgary Office
Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403) 767-9066