CORRECTION FROM SOURCE: Oilsands Quest Closes Eagles Nest Asset Sale, Signs DIP Financing Agreement and Receives Approval for S
March 23 2012 - 4:59PM
PR Newswire (Canada)
CALGARY, March 27, 2012 /CNW/ - 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.
("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. Oilsands Quest Inc.
CONTACT: Investor RelationsEmail: ir@oilsandsquest.comInvestor
Line: 1-877-718-8941
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