Pieridae Energy Limited (“Pieridae” or the “Company”)
(PEA.TO) today announced the Company has initiated a
formal process to identify, examine and consider a range of
strategic alternatives with a view to enhancing shareholder value.
Such strategic alternatives may include, but are not limited to, a
corporate sale, merger, a sale of a material portion of Pieridae’s
assets or other transactions.
Pieridae is also pleased to announce the
appointment of Adam Gray as Interim Chief Financial Officer.
Initiation of Strategic Review
Process
Pieridae’s Board of Directors has authorized the
creation of a special committee, chaired by Board member Andrew
Judson, that will review and evaluate potential strategic
alternatives and transactions.
“We are taking this step with the focus of
ensuring shareholder value is maximized,” said Pieridae Chief
Executive Officer Alfred Sorensen. “Shareholders and the Company
have invested heavily in the Goldboro LNG Project for a number of
years and we have acquired and consolidated a large base of
Foothills upstream assets, so it is prudent for us to look for ways
to ensure an appropriate return is found for the investments made
to date.”
Peters & Co. Limited has been engaged as
financial advisor to advise the special committee in connection
with this comprehensive review and analysis of strategic
alternatives. McCarthy Tétrault LLP will also provide advice to the
committee.
Pieridae has not set a definitive schedule to
complete its identification, examination and consideration of
strategic alternatives. It is the Company’s current intention not
to disclose developments with respect to the process unless and
until its Board of Directors has approved a specific transaction or
otherwise determines that disclosure is necessary or appropriate.
We caution that there are no assurances or guarantees that the
process will result in a transaction or, if a transaction is
undertaken, the terms or timing of such a transaction.
Due to today’s announcement and the Company’s
press release on July 2nd relating to reviewing strategic
alternatives for the Goldboro LNG Project, Pieridae will defer its
August 12th Q2 investor call. We will communicate any further,
material updates at the appropriate time.
Appointment of Interim Chief Financial
Officer
The Company is also pleased to announce that the
Board of Directors has approved the appointment of Adam Gray as
Interim Chief Financial Officer. Mr. Gray has been with Pieridae
since January 2020, acting as Vice-President and Controller. He
brings nearly 15 years of experience to the role, including five
years with PwC, then eight managing accounting, commercial finance
and operational readiness for the multi-billion-dollar North West
Redwater Partnership, and providing financial modelling and
analysis to the Government of Alberta’s Department of Energy. Mr.
Gray holds a Bachelor of Commerce degree (BCom) from the University
of Calgary, a Graduate Diploma in Leadership from Royal Roads
University and is a Chartered Professional Accountant (CPA).
About Pieridae:Founded in 2011,
Pieridae, a majority Canadian-owned corporation based in Calgary,
is focused on the development of integrated energy value chain
activities, including the exploration, extraction, and processing
of natural gas, NGLs, and condensate; development, construction,
and operation of LNG facilities. After completion of all the
transactions disclosed in this news release, Pieridae has
157,641,871 common shares issued and outstanding, which trade on
the TSX (PEA.TO).
For further information please
contact:
Alfred Sorensen, Chief Executive
Officer
Telephone:
(403) 261-5900
James Millar, Director, External
RelationsTelephone:
(403) 261-5900
Forward-Looking
StatementsCertain statements contained herein may
constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws
(collectively "forward-looking statements"). Words such as "may",
"will", "should", "could", "anticipate", "believe", "expect",
"intend", "plan", "potential", "continue", "shall", "estimate",
"expect", "propose", "might", "project", "predict", "forecast" and
similar expressions may be used to identify these forward-looking
statements.
Forward-looking statements involve significant
risk and uncertainties. A number of factors could cause actual
results to differ materially from the results discussed in the
forward-looking statements including, but not limited to, risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision
of resources estimates, environmental risks, competition from other
producers, incorrect assessment of the value of acquisitions,
failure to realize the anticipated benefits or synergies from
acquisitions, delays resulting from or inability to obtain required
regulatory approvals and ability to access sufficient capital from
internal and external sources and the risk factors outlined under
"Risk Factors" and elsewhere herein. The recovery and resources
estimate of Pieridae's reserves provided herein are estimates only
and there is no guarantee that the estimated resources will be
recovered. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.
Forward-looking statements are based on a number
of factors and assumptions which have been used to develop such
forward-looking statements, but which may prove to be incorrect.
Although Pieridae believes that the expectations reflected in such
forward-looking statements are reasonable, undue reliance should
not be placed on forward-looking statements because Pieridae can
give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be
identified in this document, assumptions have been made regarding,
among other things: the impact of increasing competition; the
general stability of the economic and political environment in
which Pieridae operates; the timely receipt of any required
regulatory approvals; the ability of Pieridae to obtain qualified
staff, equipment and services in a timely and cost efficient
manner; the ability of the operator of the projects which Pieridae
has an interest in, to operate the field in a safe, efficient and
effective manner; the ability of Pieridae to obtain financing on
acceptable terms; the ability to replace and expand oil and natural
gas resources through acquisition, development and exploration; the
timing and costs of pipeline, storage and facility construction and
expansion and the ability of Pieridae to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; the regulatory framework regarding royalties, taxes
and environmental matters in the jurisdictions in which Pieridae
operates; timing and amount of capital expenditures, future sources
of funding, production levels, weather conditions, success of
exploration and development activities, access to gathering,
processing and pipeline systems, advancing technologies, and the
ability of Pieridae to successfully market its oil and natural gas
products.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and
other factors that could affect Pieridae's operations and financial
results are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com), and at Pieridae's website
(www.pieridaeenergy.com). Although the forward-looking statements
contained herein are based upon what management believes to be
reasonable assumptions, management cannot assure that actual
results will be consistent with these forward-looking statements.
Investors should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the
date hereof and Pieridae assumes no obligation to update or review
them to reflect new events or circumstances except as required by
Applicable Securities Laws.
Forward-looking statements contained herein
concerning the oil and gas industry and Pieridae's general
expectations concerning this industry are based on estimates
prepared by management using data from publicly available industry
sources as well as from reserve reports, market research and
industry analysis and on assumptions based on data and knowledge of
this industry which Pieridae believes to be reasonable. However,
this data is inherently imprecise, although generally indicative of
relative market positions, market shares and performance
characteristics. While Pieridae is not aware of any misstatements
regarding any industry data presented herein, the industry involves
risks and uncertainties and is subject to change based on various
factors.
Barrels of oil equivalent (“boes”) may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Neither TSX nor its Regulation Services
Provider (as that term is defined in policies of the TSX) accepts
responsibility for the adequacy or accuracy of this
release.
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