Donnybrook closes Cequence arrangement
2013-04-15 20:05 ET - News Release
Mr. Malcolm Todd reports
DONNYBROOK ANNOUNCES CLOSING OF ASSET EXCHANGE AND ARRANGEMENT
Donnybrook Energy Inc. has closed the previously announced arrangement involving the company, Cequence Energy Ltd. and holders of common shares of Donnybrook under which Donnybrook has transferred its interest in its Simonette and Resthaven oil and gas properties to Cequence for consideration consisting of 10.3 million common shares of Cequence and Cequence's interest in its Fir oil and gas property by way of a plan of arrangement under the Business Corporations Act (Alberta).
The plan of arrangement was approved by 99.85 per cent of the votes cast by Donnybrook shareholders at a special meeting of Donnybrook shareholders on April 15, 2013, and was also approved by the Court of Queen's Bench of Alberta. Under the terms of the plan of arrangement, Donnybrook transferred the Donnybrook assets to Cequence in exchange for the Cequence Assets and 10.3 million Cequence Shares. The Donnybrook Assets transferred to Cequence consist of 38 gross (19 net) sections of land with net production of approximately 120 boe per day.
Pursuant to the Plan of Arrangement, Donnybrook Shareholders received 0.0527 of a Cequence Share for each Donnybrook Share outstanding at the effective time of the Arrangement (the "Distribution") by way of a "reduction of capital", being in the aggregate equal to approximately 5.13 percent of the outstanding Cequence Shares.
Cequence is a natural gas and oil resource play focused company with current production in excess of 9,000 boe per day. The majority of Cequence's production comes from the Deep Basin in the Simonette area where it owns Montney and other Cretaceous oil and gas rights, now including the Simonette property forming part of the Donnybrook Assets.
Donnybrook now holds its Bigstone property with 8 gross (3.75 net) sections of land and the newly acquired Fir property which consists of a total of 14 gross (3.90 net) sections of land and long life, low decline production of approximately 220 net boe per day. The Fir property is approximately 35 km from the Bigstone property.
Donnybrook will continue to consider strategic alternatives and the maximization of shareholder value and which alternatives may include further acquisitions or dispositions of assets, recapitalization or mergers with other companies. Except as required by law, Donnybrook does not intend to disclose developments with respect to strategic alternatives until the board of directors of the Company has approved a definitive transaction or strategic alternative. The Company cautions that there are no guarantees that a transaction will be undertaken or a strategic alternative pursued.
For more information about the Arrangement and the Distribution (including due bill trading), please refer to Donnybrook's information circular and proxy statement dated March 15, 2013 and the Company's news release dated March 28, 2013.
Further information relating to Donnybrook is also available on its website at www.donnybrookenergy.ca.
We seek Safe Harbor.