CUSIP# 678046 10 3
NYSE Amex: BQI
CALGARY,
Feb. 3, 2012 /PRNewswire/ - Oilsands
Quest Inc. (NYSE Amex: BQI) ("Oilsands Quest," or "the Company")
has secured a commitment for debtor-in-possession ("DIP") financing
of CDN$3.75 million (the "DIP
Facility"), for the purposes of funding operating costs and other
expenses while the Company proceeds with its previously-announced
solicitation process while under creditor protection.
The DIP Facility is being provided by Century
Services Inc. (the "DIP Lender") pursuant to the terms and
conditions of a Commitment Letter dated February 1, 2012. The DIP Facility will be
repayable on the earlier of one year following closing 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"). The DIP Facility is subject to the completion of
definitive agreements and Court approval, which the company expects
to obtain by February 16, 2012, after
which advances under the DIP Facility will be available to Oilsands
Quest.
Oilsands Quest has also entered into a purchase and
sale agreement with an unrelated third-party entity to sell its
non-core Eagles Nest asset for CDN$4.4
million. The purchaser has agreed to pay deposits of
CDN$300,000 by February 21, 2012 with closing anticipated on or
before March 23, 2012. The asset sale
is also conditional on Court approval and normal closing conditions
and adjustments. There can therefore be no assurance that the sale
will be concluded.
The Eagles Nest prospect covers 22,773 acres (9,216 hectares)
located in the Athabasca oil sands
region northwest of Fort McMurray,
Alberta. The property is geographically distant from
Oilsands Quest's other oil sands discoveries and largely
unexplored. Resource estimates for the property are available on
the Company's website.
TD Securities Inc. acted as financial advisor to Oilsands Quest
on the sale of Eagles Nest and, as previously disclosed, continues
to assist the Company with the ongoing solicitation process.
Oilsands Quest continues to operate under the protection of CCAA
with the assistance of a Court-appointed monitor. The Company's
common shares remain suspended 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. It is leading the establishment of the province of
Saskatchewan's emerging oil sands
industry.
Forward-looking statements:
This news release includes certain statements that may be deemed
to be "forward-looking statements," including the expected date for
obtaining court approval of the DIP Facility and the expected date
for closing the sale of the Eagles Nest asset. 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 December 9, 2011. 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.