CALGARY, ALBERTA- (theNewswire) - March 5, 2013)
Tallgrass Energy Corp. ("Tallgrass" or "the Company") is pleased to provide the following corporate update.
Tallgrass is pleased to announce that Mr. Jonathan Lexier, B.Sc., P.Eng., MBA, has accepted the role of Chairman of the Board of Directors of the Company. The Board looks forward to the experienced guidance of Mr. Lexier, an accomplished oil and gas veteran, who has served as an independent director since November 2011.
Tallgrass also welcomes Mr. Scott Reeves as the new Corporate Secretary of the Company. Mr. Reeves is a partner at Tingle Merrett LLP, a Calgary based law firm focused on securities, corporate finance and commercial transactions for emerging and growth companies, joint ventures and partnerships. Scott has extensive experience in structured financings, private equity and public offerings, public listings and exchange matters, corporate acquisitions, share and asset acquisitions and dispositions, restructurings, securities regulatory requirements for issuers and dealers and other related business transactions. He also acts a director and/or corporate secretary for many public and private companies, providing detailed corporate governance and continuous disclosure advice to his clients.
Tallgrass is meeting its production guidance of 515 boepd (>70% oil and NGL).
Tallgrass is focused on light oil opportunities in its core area of Niton-Bigoray, west of Edmonton, and is executing a strategy of monetizing non-core assets to fund a drilling program as well as reducing debt.
Tallgrass has: - sold an interest in a non-producing, non-core, Saskatchewan property for $818,000 on February 28, 2013.
- engaged Sayer Energy Advisors to conduct a sales process for its non-core East Central Alberta assets which are currently producing in excess of 100 boepd per day (70% oil +NGL).
- initiating a formal process to monetize some or all of its non-core, very large Duvernay and Nordegg land positions as described below.
Niton-Bigoray Core Area:
Tallgrass now recognizes an inventory of 66 drilling locations and has identified further opportunities to increase this base substantially. This inventory provides the backbone of the Company's plan to build to 3,000 boepd in a 3 year time frame.
Niton Cardium wells licenced:
Tallgrass has received licences from the ERCB to drill two wells at its Niton Cardium project. The wells will be drilled from a single pad as horizontal wells and completed with multi-stage fracs.
Press Release: March 5, 2013 continued...
Bigoray well licencing:
Tallgrass has initiated the licencing process on two more horizontal wells at its Bigoray project. One of these wells will target the Cardium formation and the second the Belly River Formation.
Duvernay Land Position:
Tallgrass currently owns rights to 120 sections of Duvernay lands in the East Shale Basin in West Central Alberta.
A recently released industry research report, highlighted that initial results from two new horizontal wells in the Duvernay Formation "oil window" were very strong. Tallgrass is very encouraged by these results due to their general proximity to the Company's large Duvernay land base also in the "oil window".
Nordegg land position:
Tallgrass has high graded its Nordegg land position and will have 100% interest in 134 net sections going forward.
Blackout period ended:
As of the opening of market on March 7, a self-imposed blackout period will be ended, allowing management and directors to participate in market purchases.
For further information please contact:
John H. McAdam, B.Sc., P.Eng. ICD.D
President and CEO
Tallgrass Energy Corp.
Suite 1540, 700-6th Avenue SW
Calgary, Alberta, T2P 0T8
Main: (403) 262-0315
Fax: (403) 262-0319
Note Regarding Forward-Looking Statements and Other Advisories
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by Tallgrass' management. Although Tallgrass believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Tallgrass can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. These forward-looking statements are made as of the date of this press release and Tallgrass disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Press Release: March 5, 2013 continued...
Barrel of Oil Equivalent Presentation - Natural gas is converted to a barrel of oil equivalent ("boe") using six thousand cubic feet ("mcf") of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one barrel ("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. All boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Natural Gas Liquids ("NGL") are reported in barrels directly.
Trading in the securities of Tallgrass Energy Corp. should be considered highly speculative. 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.
This News Release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
Leave a comment...