CALGARY,
March 27, 2012 /PRNewswire/ - This
document corrects and replaces the news release issued at
8:00 a.m. EST on March 27, 2012. The date of the settlement notice
should have read March 19, 2012,
rather than the previously reported May 19,
2012. The complete and corrected news release
follows.
Oilsands Quest Inc. (NYSE Amex: BQI) ("Oilsands Quest" or "the
Company") closed the previously disclosed sale of the Company's
non-core Eagles Nest asset to Cavalier Energy Inc., an unrelated
third party, on March 23, 2012, for
CDN$7.005 million.
On March 26, 2012, Oilsands Quest
signed the definitive loan agreements for the previously announced
debtor-in-possession financing in the amount of CDN$2.85 million (the "DIP Facility"). Funds from
the DIP Facility are now available to the Company for the purposes
of funding operating costs and other expenses while proceeding with
the solicitation process.
The DIP Facility will terminate on the earlier of March 26, 2013 or the termination of the Order
from the Alberta Court of Queen's
Bench (the "Court") providing creditor protection under the
Companies' Creditors Arrangement Act (Canada) ("CCAA").
On March 19, 2012, Oilsands Quest
received notice that the United States District Court for the
District of Colorado approved the
settlement relating to the derivative lawsuit captioned Make a
Difference Foundation, Inc. v. Hopkins, et al., # 10-cv-00498
WYD-MJW (D. Colo.), which is substantially similar to the proposed
settlement that was disclosed on November 9,
2011.
Oilsands Quest continues to operate under the protection of the
CCAA with the assistance of a Court-appointed monitor. The
Company's common shares remain halted from trading until either a
delisting occurs or until the NYSE permits the resumption of
trading.
About Oilsands Quest
Oilsands Quest Inc. (www.oilsandsquest.com) is exploring and
developing oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands
discovery.
Forward-looking statements
This news release includes certain statements that may be deemed
to be "forward-looking statements." All statements, other than
statements of historical facts, included in this news release that
address activities, events or developments that management expects,
believes or anticipates will or may occur in the future are
forward-looking statements.
Forward-looking statements are statements other than relating to
historical fact and are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "potential", "prospective" and other similar words or
statements that certain events or conditions "may" "will" or
"could" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, which include but are not limited to the ability to
raise additional capital, risks associated with the Company's
ability to implement its business plan, its ability to successfully
complete the previously announced solicitation process while under
creditor protection, its ability to submit a timely plan to its
stakeholders and the court under the CCAA and to resolve its
operational, legal and financial difficulties, the possible
delisting of its securities from NYSE Amex, risks inherent in the
oil sands industry, regulatory and economic risks, land tenure
risks and those factors listed under the caption "Risk Factors" in
the Company's Form 10-Q filed with the Securities and Exchange
Commission on March 8, 2012. The
Company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change, except as required by law. The reader is cautioned
not to place undue reliance on forward-looking statements.
SOURCE Oilsands Quest Inc.