Platino Energy Corp. Reaches Agreement Regarding Reimbursement Claim by Pacific Rubiales Energy Corp.
06 December 2013 - 8:22AM
Marketwired
Platino Energy Corp. Reaches Agreement Regarding Reimbursement
Claim by Pacific Rubiales Energy Corp.
CALGARY, ALBERTA--(Marketwired - Dec 5, 2013) - Platino Energy
Corp. ("Platino") (TSX-VENTURE:PZE) announces that it has reached
an agreement with Pacific Rubiales Energy Corp. ("Pacific
Rubiales") to settle Pacific Rubiales' claim under a reimbursement
agreement (the "Reimbursement Agreement") between Platino and
C&C Energia Ltd. ("C&C") entered into in connection with
the plan of arrangement under which Pacific Rubiales acquired
C&C and Platino was spun off to the former shareholders of
C&C.
As Platino has
disclosed previously, the Reimbursement Agreement required Platino
to reimburse C&C (now part of Pacific Rubiales) for the amount
of any C&C working capital deficiency on the effective date of
the plan of arrangement if an adjusted net working capital
statement to be prepared by C&C indicted such a deficiency.
Pacific Rubiales and Platino disagreed on whether a reimbursement
obligation existed if the appropriate contractual principles under
the Reimbursement Agreement were applied. Following discussions
between Pacific Rubiales and Platino regarding the nature of this
obligation, Pacific Rubiales filed a claim for approximately C$12.8
million against Platino with the Alberta Court of Queen's Bench to
protect its interests under the Reimbursement Agreement.
Platino and Pacific
Rubiales have entered into a settlement agreement pursuant to which
Pacific Rubiales agreed to discontinue its action against Platino
and release Platino from further obligations in respect of the
working capital reimbursement provisions of the Reimbursement
Agreement, and Platino agreed to pay to Pacific Rubiales
C$3,000,000 and an amount of Colombian pesos equivalent to
approximately C$165,000, and to issue to Pacific Rubiales 1,000,000
newly issued common shares. Issuance of the common shares is
subject to approval of the TSX Venture Exchange.
Based on current
cash and cash equivalents (including short-term investments),
settlement with Pacific Rubiales and activities projected for the
remainder of 2013, the Company estimates it will exit 2013 with
approximately US$54 million (or US$0.78 per undiluted common share)
in available funds.
About Platino Energy Corp.
Platino is a
Calgary, Alberta headquartered resource company engaged in the
exploration for, and the acquisition, development and production of
hydrocarbons in Colombia.
Advisory Regarding Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of applicable securities laws. The use of any of
the words "will", "plans", "expects", "estimates", "believes" and
similar expressions is intended to identify forward-looking
information concerning the Company's future operations and
performance, including (a) the company's expected issuance of
common shares to Pacific Rubiales, and the (b) expectations
regarding the available funds of Platino at the end of
2013.
The forward-looking information in this news release is
based on certain key expectations and assumptions made by Platino.
The statement regarding the future issuance of the common shares is
made on the assumption that Platino will receive the approval of
the TSX Venture Exchange to such issuance in due course. The
statement regarding Platino's expected available funds at year end
is based on the assumptions that (a) no unexpected operating
expenses arise before the end of 2013; (b) Platino does not
complete any further acquisition transactions or unplanned capital
expenditures before the end of 2013; (c) no other events arise
which would affect Platino's cash position beyond those planned by
Platino; and (d) Platino does not issue any additional common
shares which would affect the calculation of available funds on a
per share basis. Although Platino 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 Platino can give no assurance
that it will prove to be correct.
The forward-looking information in this news release is
subject to known and unknown risks and uncertainties and other
factors which may cause actual results to differ materially from
those expressed or implied in the forward-looking information. Such
risks, uncertainties and factors include, among others: risks that
the TSX Venture Exchange will not approve the common share
issuance; risks that Platino will face unbudgeted expenses or
payment obligations that would affect its year-end cash position;
risks that the Company will have more common shares outstanding at
the end of 2013 affecting the per share cash position of the
Company at year end; the nature of the exploration and development
activities on Platino's assets; risks that actual operating and
capital costs will be greater than expected; risks as to the
ability of the Company's industry partners to satisfy their
obligations under their agreements with the Company, as well as
other difficulties encountered during the exploration for,
delineation, development and production of oil. As a result of the
foregoing, readers should not place undue reliance on the
forward-looking information contained in this news release. Readers
are cautioned that the foregoing list of factors is not
exhaustive.
Additional information on these and other factors that could
affect the operations or financial results of Platino are included
in the Listing Application (Form 2B) of Platino filed with the
TSXV, which has been filed with applicable securities regulatory
authorities and may be accessed through the SEDAR website
www.sedar.com. The forward-looking information contained in this
news release is made as of the date hereof and Platino undertakes
no obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
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.
Platino Energy Corp. - BogotaTomas Villamil President &
Chief Executive Officer+57(1) 235-0007Platino Energy Corp. -
BogotaAndres CuencaController & Interim Chief Financial
Officer+57(1) 235-0007Platino Energy Corp. - CalgaryTyler
RimbeyVice President, Business Development+1(403) 262-6046
(TSXV:PZE)
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