CALGARY , Oct. 6, 2014 /CNW Telbec/ - Exall Energy Corporation ("Exall"
or the "Company") (TSX:EE and TSX:EE.DB) announced today that further
to its September 25, 2014 announcement, one of the syndicate members
that was providing the underlying funding for a debenture purchase
agreement (the "Agreement") with a private Canadian lender (the
"Lender") has agreed as a preliminary step to pay out Exall's existing
facility with Exall's current senior Canadian lender (the "Facility')
in full, in consideration for an assignment of the Facility and
security package. Exall's current senior Canadian lender had previously
stipulated it would not act under its security until after September
30, 2014 , which was intended to permit the Agreement with the Lender to
be closed. However, the parties have been advised that closing of the
transaction with the Lender has been delayed until later in October,
and as a result Exall and the Lender were forced to revise the prior
process to accommodate Exall's current senior Canadian lender. Exall's
public filings can all be found at www.exall.com or www.sedar.com.
The Lender intends to complete the original Agreement in late October
with Exall, which will result in the issuance of a $35 million
debenture, fully secured by Exall's assets (the "Debenture"), at which
time the interim lender will be paid out in full. At that point the
other related transactions described in the September 25, 2014 press
release, being the previously announced sale of 18% of the Exall
working interest, in the Mitsue oil and gas properties to a private
corporation for $14,000,000 , along with the purchase of 15 million
common shares of Exall, at 20 cents per share, for total gross proceeds
to Exall of $3,000,000 under a private placement, are both expected to
close.
About Exall
Exall is a junior oil and gas company active in its business of oil and
gas exploration, development and production from its properties in
Alberta . Exall is currently developing the new Mitsue area "Marten
Mountain" discovery in north-central Alberta .
Exall currently has 66,634,854 common shares outstanding. The Company's
common shares are listed on the Toronto Stock Exchange under the
trading symbol EE. The Company's convertible debentures are listed on
the Toronto Stock Exchange under the trading symbol EE.DB
Reader Advisory
This news release contains forward-looking statements, which are subject
to certain risks, uncertainties and assumptions, including those
relating to results of operations and financial condition, capital
spending, financing sources, commodity prices and costs of production.
By their nature, forward-looking statements are subject to numerous
risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, actual results may differ
materially from those predicted. A number of factors could cause actual
results to differ materially from the results discussed in such
statements, and there is no assurance that actual results will be
consistent with them. Such factors include fluctuating commodity
prices, capital spending and costs of production, and other factors
described in the Company's most recent Annual Information Form under
the heading "Risk Factors" which has been filed electronically by means
of the System for Electronic Document Analysis and Retrieval ("SEDAR")
located at www.sedar.com. Such forward-looking statements are made as at the date of this news
release, and the Company assumes no obligation to update or revise
them, either publicly or otherwise, to reflect new events, information
or circumstances, except as may be required under applicable securities
law.
For the purposes of calculating unit costs, natural gas has been
converted to a barrel of oil equivalent (boe) using 6,000 cubic feet
equal to one barrel (6:1), unless otherwise stated. The boe conversion
ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion
method and does not represent a value equivalency; therefore boe may be
misleading if used in isolation. This conversion conforms to the
Canadian Securities Regulators' National Instrument 51-101 - Standards
of Disclosure for Oil and Gas Activities.
SOURCE EXALL ENERGY CORPORATION