Pinecrest Energy Inc. Announces Termination of Arrangement
Agreement and Receipt of Break Fee
CALGARY,
Dec. 11, 2012 /CNW/ - Pinecrest
Energy Inc. (TSX-V: PRY) ("Pinecrest") announces the
termination of the arrangement agreement dated November 20, 2012 (the "Arrangement
Agreement") between it and Spartan Oil Corp.
("Spartan"). Pinecrest has received the $12.5 million break fee payable pursuant to the
Arrangement Agreement.
Pinecrest will continue to pursue opportunities
to enhance shareholder growth through strategic acquisitions and
implementation of its waterflooding program, as previously
announced. The combination of Pinecrest's large drilling
inventory, industry leading production netback, improving capital
efficiencies and attenuated corporate decline rate will drive the
growth profile of Pinecrest for the foreseeable future.
About Pinecrest
Pinecrest is engaged in the acquisition and
exploration for and development and production of oil and natural
gas in Western Canada.
Pinecrest has a significant position in the emerging, light oil
Slave Point carbonate resource play focused in the greater
Red Earth area of north-central
Alberta. The common shares
of Pinecrest are listed on the TSXV under the symbol "PRY".
Forward-Looking Statement Advisory
The information in this press release
contains certain forward-looking statements. These statements
relate to future events or our future performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe", "would" and similar expressions. In
particular, forward looking statements in this press release
includes, but is not limited to: the intent of Pinecrest to pursue
opportunities to enhance shareholder growth through strategic
acquisitions and implementation of its waterflooding program and
Pinecrest's expectations that the attributes of its assets and
operations will drive the growth profile of the Pinecrest. These
statements involve substantial known and unknown risks and
uncertainties, certain of which are beyond Pinecrest's control,
including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption
of new environmental laws and regulations and changes in how they
are interpreted and enforced; fluctuations in commodity prices and
foreign exchange and interest rates; stock market volatility and
market valuations; volatility in market prices for oil and natural
gas; liabilities inherent in oil and natural gas operations;
uncertainties associated with estimating oil and natural gas
reserves; competition for, among other things, capital,
acquisitions, of reserves, undeveloped lands and skilled personnel;
incorrect assessments of the value of acquisitions; changes in
income tax laws or changes in tax laws and incentive programs
relating to the oil and gas industry; geological, technical,
drilling and processing problems and other difficulties in
producing petroleum reserves. Pinecrest's actual results,
performance or achievement could differ materially from those
expressed in, or implied by, such forward-looking statements and,
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur or, if any of them do, what benefits that Pinecrest will
derive from them. Except as required by law, Pinecrest undertakes
no obligation to publicly update or revise any forward-looking
statements.
Many of the risks and uncertainties described
above and additional risk factors are described in Pinecrest's
Annual Information Form which is available at www.sedar.com and
www.pinecrestenergy.com. Readers are also referred to risk factors
described in other documents Pinecrest files with Canadian
securities authorities.
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.
SOURCE Pinecrest Energy Inc.