TSX VENTURE: RPT
CALGARY, Jan. 6, 2015 /CNW/ - ArPetrol Ltd.
("ArPetrol" or the "Company") (TSX VENTURE:RPT) announces that it
has received TSX Venture Exchange ("TSXV") approval of its Notice
of Intention to commence a normal course issuer bid (the "NCIB")
through the facilities of the TSXV, permitting the Company to
repurchase, for cancellation, up to 1,822,521 common shares in the
capital of the Company ("Common Shares") representing 10 percent of
the Company's Public Float (as such term is defined in the TSXV
Corporate Finance Manual). The NCIB will commence on January 6, 2015, and run until the earlier of the
date on which purchases under the NCIB have been completed and
January 5, 2016. The Company
believes that, depending on the trading price of the Common Shares
and other relevant factors, purchasing Common Shares represents an
attractive investment opportunity and is in the best interests of
ArPetrol and its shareholders.
The NCIB is to be made through the facilities of the TSXV and
other Canadian Market Places, and in accordance with policy
statements on normal course issuer bids. The price which ArPetrol
will pay for any Common Share will be the market price at the time
of acquisition plus brokerage fees, if any. No purchases of
Common Shares have been made by the Company in the past 12 months.
Purchases pursuant to the NCIB will be made by Raymond James Ltd.
on behalf of the Company. A copy of the Form 5G - Notice of
Intention to make a Normal Course Issuer Bid filed by the
Company with the TSXV can be obtained from the Company upon request
without charge.
To the knowledge of the directors and officers of ArPetrol, no
director or officer, associate of a director or officer of the
Company, no person acting jointly or in concert with the Company
nor any person holding ten percent or more of the Common Shares has
any present intention to sell Common Shares during the period of
the NCIB.
Operational Update and Outlook
During 2014, ArPetrol made significant progress towards a stable
revenue generating company with a balance sheet that supports its
operations. Production and third party processing volumes for
the fourth quarter of 2014 are expected to be 190 barrels of oil
equivalent per day (boe/d) and 69 million cubic feet per day
(MMcf/d) respectively. Cash flows for the fourth quarter of
2014 are expected to be below previous quarters due to a routine
maintenance shut-down in December. The Company's short term
loan was fully repaid as anticipated prior to December 31, 2014.
ArPetrol has also been able to repatriate significant funds from
Argentina to Canada through the repayment of intercompany
loans. During 2014, repayment of loan principal and interest
to Canada totaled over
$US 3 million. It is expected
that all 2015 excess cash flow from Argentina operations could be repatriated to
Canada should the Company
choose.
The Company's 2015 outlook includes estimated production of 200
to 240 boe/d with estimated processing volumes of 70 to 80
MMcf/d. In 2015, the Company's forecasted cash flows are
expected to allow it to be self-funding to cover its capital
expenditures and generate cash for other uses throughout the
year.
About ArPetrol
ArPetrol is a Calgary-based
publicly traded company engaged in oil and natural gas exploration,
development and production and third-party natural gas processing
in Argentina, where it owns and
operates a gas processing facility with capacity of 85 million
cubic feet per day.
Boe Presentation
Production information is commonly reported in units of barrels
of oil equivalent (boe). For purposes of computing such units,
natural gas is converted to equivalent barrels of oil using a
conversion factor of six thousand cubic feet to one barrel. This
conversion ratio of 6:1 represents energy equivalency, which is
primarily applicable at the burner tip, and does not represent a
value equivalency at the wellhead. Such disclosure of boe may be
misleading, particularly if used in isolation.
Forward-Looking Information
This news release contains certain forward‐looking statements
relating, but not limited, to operational information, the ability
to maintain processing rates and revenue in the same range as
previously realized, the ability to be self-funding and maintain
positive cash flow in 2015, estimated production volumes,
processing volumes and capital expenditures, and the ability to
repatriate excess cash flow to Canada. Forward‐looking information typically
contains statements with words such as "anticipate", "believe",
"expect", "plan", "intend", "estimate", "propose", "project", or
similar words suggesting future outcomes. The Company cautions
readers and prospective investors in the Company's securities not
to place undue reliance on forward‐looking information as, by its
nature, it is based on current expectations regarding future events
that involve a number of assumptions, inherent risks and
uncertainties, which could cause actual results to differ
materially from those anticipated by the Company.
Forward-looking information is based on management's current
expectations and assumptions regarding, among other things, future
operations and transactions, future capital and other expenditures
(including the amount, nature, timing, availability and sources of
funding thereof), stable processing volumes, future production and
processing revenue, future economic conditions, future currency and
exchange rates, future pricing, the ability to repatriate funds
from Argentina, continued
political stability in the areas in which the Company is
operating, and the Company's continued ability to obtain and
retain qualified management and staff and equipment in a timely and
cost-efficient manner. Although the Company believes the
expectations and assumptions reflected in such forward‐looking
information are reasonable, they may prove to be incorrect.
Forward‐looking information involves significant known and
unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those anticipated by the
Company, including but not limited to risks associated with the oil
and natural gas industry (e.g., operational risks for its producing
assets risks inherent in future drilling programs and the operation
of the gas plant, and health, safety and environmental risks), the
ability to retain management and staff, difficulties that may be
encountered to repatriate funds, weather-induced delays and natural
disasters, interruptions to production and processing revenue,
production declines, the uncertainty regarding future revenues,
union activities and labour issues in Argentina, the risk of commodity price
changes, the risk of foreign exchange rate fluctuations (which may
not be as favourable as those currently experienced), currency
controls, and risks associated with international activity and
political risks over which it has no control (including risks
related to the general economic and business conditions in
Argentina, economic, social or
political instability or change, the uncertainty of negotiating
with foreign governments, expropriation and/or nationalization,
changes in export or exchange policies, adverse determinations or
rulings by governmental authorities, and changes in energy policies
or in the personnel administering them).
The forward‐looking information included herein is expressly
qualified in its entirety by this cautionary statement. The
forward‐looking information included herein is made as of the date
hereof and the Company assumes no obligation to update or revise
any forward‐looking information to reflect new events or
circumstances, except as required by law. Additional
information relating to the Company is also available on SEDAR at
www.sedar.com.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release
SOURCE ArPetrol Ltd.