CALGARY, March 25, 2019 /CNW/ - RETURN ENERGY INC.
("Return" or the "Company") (TSX-V: RTN) announces
that its Board of Directors (the "Board") has initiated a formal
process to review potential strategic alternatives available to the
Company (the "Process") in an effort to enhance shareholder
value.
The Board believes that the current trading price of its common
shares does not adequately reflect the underlying value of the
Company and its assets, in particular its Upper Charlie Lake light
oil development project at Rycroft,
Alberta. The Board has appointed an independent committee
(the "Special Committee") to undertake a broad review of potential
alternatives to enhance shareholder value. Such strategic
alternatives may include, but are not limited to, a sale or merger
of the Company or other form of business combination; a sale or
joint venture involving all or a portion of the assets; a
recapitalization of the Company or other form of strategic
investment; or the purchase of assets.
Sayer Energy Advisors ("Sayer") has been engaged by the Special
Committee as its exclusive financial advisor in connection with the
Process. Additional information relating to the Process will be
available on Sayer's website at www.sayeradvisors.com in
mid-April.
Return has not set a definitive schedule for the Process and it
does not intend to provide updates or otherwise disclose
developments with respect to the Process until the Board has
approved a definitive transaction or strategic alternative, or
otherwise determines that disclosure is necessary or appropriate.
Return will continue to execute its business plan.
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.
Reader Advisories
Forward‐Looking Statements. This news release contains
forward‐looking statements. Such forward‐looking statements
typically contain statements with words such as "anticipate",
"expect", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an outlook. More
particularly and without limitation, this news release contains
forward‐looking statements and information concerning the Company's
review of strategic alternatives that may be available to it. The
forward‐looking information is based on certain key expectations
and assumptions made by Return's management, including:
expectations concerning prevailing commodity prices, exchange
rates, interest rates, applicable royalty rates and tax laws;
performance of existing and future wells; reserve and resource
volumes; anticipated timing and results of capital expenditures;
the success obtained in drilling new wells; the sufficiency of
budgeted capital expenditures in carrying out planned activities;
the timing, location and extent of future drilling operations; the
state of the economy and the exploration and production business;
results of operations; performance; business prospects and
opportunities; the availability and cost of financing, labour and
services; the impact of increasing competition; ability to market
oil and natural gas successfully and Return's ability to access
capital on satisfactory terms. Although the Company believes 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 the Company can
give no assurance that they will prove to be correct.
Forward-looking statements and information are provided for the
purpose of providing information about the current expectations and
plans of management of the Company relating to the future. Readers
are cautioned that reliance on such statements and information may
not be appropriate for other purposes, such as making investment
decisions. 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, the risks associated with
the oil and gas industry in general such as 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 reserves, production,
costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; marketing and
transportation; loss of markets; environmental risks; competition;
incorrect assessment of the value of acquisitions and failure to
realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; failure to
obtain required regulatory and other approvals and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations.
Return's actual results, performance or achievement could differ
materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward‐looking
information will transpire or occur, or if any of them do so, what
benefits that Return will derive there from. There are no
assurances that the review of strategic alternatives will result in
a transaction or if a transaction is undertaken, as to its terms or
timing.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. Additional information on these and other factors
that could affect Return's operations or financial results are
included in the Company's current annual information and other
reports on file with applicable securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com).
The forward‐looking statements and information contained in this
news release are made as of the date hereof and no undertaking is
given to update publicly or revise any forward‐looking statements
or information, whether as a result of new information, future
events or otherwise, unless so required by applicable securities
laws. The forward-looking statements or information contained in
this news release are expressly qualified by this cautionary
statement.
SOURCE Return Energy Inc