CALGARY, Alberta, April 30, 2019 (GLOBE NEWSWIRE) -- Petrocapita Income Trust (CSE:PCE.UN) (“Petrocapita” or the “Trust”) announces that as of April 24, 2019, Petrocapita Oil and Gas L.P. was served an Obligation to Pay and a Default and Enforcement Notice by Safeway Holdings (Alberta) Ltd (the “Notice”). The Notice demanded repayment of all amounts due and owing to Safeway in the amount of $8,069,520.55 (plus costs). Petrocapita Oil and Gas L.P. has 10 days under section 244 of the Bankruptcy and Insolvency Act to respond to the Notice, after which Safeway will have the option (and right) to enforce its security. Petrocapita Oil and Gas L.P. does not dispute the amounts owing.
Failure in managing to make payment due under the Notice or meet other payables due and or any regulatory requirements may potentially result in Petrocapita Oil and Gas L.P. having to cease operations, either temporarily or permanently.
Petrocapita Oil and Gas L.P. plans to continue operations as they currently stand and as announced on March 22, 2019 to seek transaction(s) from the strategic alternative process undertaken that could assist to pay down debt and also continue to work on initiatives to secure financial partners to help assist in well reactivations, recompletions and or drilling.
Petrocapita will continue to keep the regulators in Alberta and Saskatchewan aware of the Trust status, as any transaction undertaken will require their respective approval.
This press release may be viewed on the Canadian Securities Exchange (CSE) and the System for Document Analysis and Retrieval (“SEDAR”) and may be accessed at www.sedar.com.For further information, please contact:
Richard Mellis, President
Telephone: (587) 393-3459
OR
Gregory Marr, CFO, Investor Relations
Telephone: (587) 393-3461
FORWARD LOOKING INFORMATION:
Certain statements and information contained in this news release constitute forward-looking statements and forward-looking information as defined under applicable securities legislation (collectively, "forward-looking statements"). These forward-looking statements relate to future events or Petrocapita's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.
Readers are cautioned that the risk factors set forth above should not be construed as exhaustive. Additional information on risks, uncertainties and factors that could affect the foregoing forward-looking information and/or Petrocapita's operations or results therefrom is included in its filings with the securities commissions which have been filed under Petrocapita's profile on SEDAR (www.sedar.com).
Although the forward-looking statements contained in this news release are based upon what Petrocapita's management believes to be reasonable assumptions, Petrocapita cannot assure investors that actual results will be consistent with such information. Forward-looking statements reflect management's current beliefs and are based on information currently available to Petrocapita. Petrocapita cautions readers not to place undue reliance on Petrocapita's forward-looking statements. The forward-looking statements are made as of the date of this news release and Petrocapita assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable securities laws.