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CALGARY, ALBERTA--(Marketwired - Mar 23, 2016) - PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announces filing of its financial statements as at and for the year ended December 31, 2015, and provides an update on its strategic alternatives process. The Company's year-end filings consisting of consolidated financial statements and management's discussion and analysis for the year ended December 31, 2015 are available on SEDAR at www.sedar.com. All references to dollars or "$" in this news release are references to Canadian dollars.
Strategic Alternatives Process
The special committee of the board of directors of PRD has directed management and its advisors to evaluate in greater detail alternatives to returning capital to its shareholders followed by the voluntary liquidation and dissolution of the Company. Such alternatives may include, but are not limited to, one or more distributions of capital followed by the voluntary dissolution of PRD or the redemption of all the outstanding common shares.
Notwithstanding its direction to management, the special committee will continue to work with its financial advisor, FirstEnergy Capital Corp., to identify, consider and evaluate other strategic alternatives available to PRD, including a business combination with another issuer.
As of March 22, 2016, the Company had a cash balance of $13.4 million and expects to incur not more than $1 million in restructuring and other costs from March 2016 onwards. These costs, which will be funded from the Company's cash balance, include ongoing administrative costs, office lease costs, financial, legal and other professional costs.
Stock Exchange Listing
At the Company's request, the TSX Venture Exchange ("TSXV") has agreed to delay the transfer of the Company's listing to the NEX provided that the Company keeps the TSXV apprised of the status of its ongoing strategic review process.
PRD's common shares are listed on the TSXV with the symbol "PRD". As of March 23, 2016, the Company had 143,908,116 common shares outstanding.
Forward looking information
This news release contains forward-looking information relating to: the expected costs of restructuring; the outcome of the Company's evaluation of its strategic alternatives; the ability of the Company to maintain its listing on the TSXV and other statements that are forward-looking in nature. Such forward-looking information is subject to important risks, uncertainties and assumptions.
The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information. Forward-looking information is based on certain factors and assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking information may differ materially from actual results or events. The risks and uncertainties include, without limitation: the general stability of the economic and political environments in which the Company exists; the timely receipt of any required regulatory approvals; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company exists, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Additional information on these and other factors that could affect PRD's financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this news release are made as at the date of this news release and PRD does not undertake any obligation to update publicly or to revise any of the forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The forward-looking information contained in this news release describe our expectations as of March 23, 2016 and, accordingly, are subject to change after such date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.
Future Oriented Financial Information
The estimate of restructuring costs set forth in this news release may be considered to be future-oriented financial information for the purposes of applicable Canadian securities laws. Future-oriented financial information contained in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available, and to become available in the future. In particular, this news release contains projected restructuring costs. These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above. Actual results may differ significantly from the projection presented herein. This projection may also be considered to contain future-oriented financial information or a financial outlook. The actual results of PRD's restructuring process will likely vary from the amounts set forth in the projection, and such variations may be material. See above for a discussion of the risks that could cause actual results to vary. The future-oriented financial information contained in this news release has been approved by management as of the date of this news release. Readers are cautioned that any such future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
PRD Energy Inc.
Chairman and Chief Executive Officer
PRD Energy Inc.
Vice President, Finance and Chief Financial Officer