Completion of Corporate Reorganization and Introduction of a Share Dividend Program
On December 31st, 2012 Petrobank Energy and Resources Ltd. and PetroBakken completed a corporate reorganization which resulted in Petrobank shareholders effectively receiving Petrobank's share holdings in PetroBakken while maintaining their interest in the remaining Petrobank assets. This transaction eliminated Petrobank's 56% ownership in PetroBakken through the distribution of the 107.8 million shares owned by Petrobank to the Petrobank shareholders. This resulted in our market float increasing from approximately 83 million shares to 191 million shares, providing investors with increased trading liquidity.
Concurrent with the reorganization, PetroBakken has adopted a Share Dividend Program ("SDP"). PetroBakken currently has a dividend reinvestment plan "(DRIP)" in place that is available only to Canadian PetroBakken shareholders. The new SDP will be available to Canadian shareholders and will also enable most Non-Canadian shareholders to participate. The DRIP and the SDP will both allow shareholders to effectively receive their monthly PetroBakken dividends in additional PetroBakken shares at a 5% discount to the market price at the date of the dividend payment. Further information in respect of the DRIP and SDP, including additional tax information and information on how to enrol your shares, will be available through our website at www.petrobakken.com.
We are pleased to announce the following internal management appointments. Mr. Rene Laprade has been promoted to the position of Senior Vice President and Chief Operating Officer. Rene has been with PetroBakken since our inception as Senior Vice President, Operations. Mr. Brad Malley has been promoted to Vice President, Drilling and Completions. Mr. David Salahub has been promoted to Vice President, Production. Ms. Doreen Scheidt has been promoted to Vice President and Controller. Finally, Mr. Lars Glemser has been promoted to Treasurer.
PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.
Non-GAAP Measures. This press release contains financial terms that are not considered measures under IFRS, such as funds flow from operations and funds flow per share. These measures are commonly utilized in the oil and gas industry and are considered informative for management and stakeholders. Specifically, funds flow from operations reflects cash generated from operating activities before changes in non-cash working capital. Management considers funds flow from operations and funds flow per share important as it helps evaluate performance and demonstrate the ability to generate sufficient cash to fund future growth opportunities, pay dividends and repay debt. Funds flow from operations and funds flow per share may not be comparable to those reported by other companies nor should they be viewed as an alternative to cash flow from operations or other measures of financial performance calculated in accordance with IFRS. Further information in respect of these non-GAAP measures is set forth in our MD&A.
Forward-Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to future results from operations, projected financial results, future capital costs, future production rates, proposed exploration and development activities and capital spending levels. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the success of future drilling, completion, recompletion and development activities, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
PetroBakken Energy Ltd.
John D. Wright
President and Chief Executive Officer
PetroBakken Energy Ltd.
Peter D. Scott
Senior Vice President and Chief Financial Officer
PetroBakken Energy Ltd.
Bill A. Kanters
Vice President Capital Markets
PetroBakken Energy Ltd.
Eighth Avenue Place, 2800, 525 - 8th Avenue S.W.
Calgary, Alberta, T2P 1G1
(403) 218.6075 (FAX)
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