Sahara Energy Ltd. Announces Completion of Bankruptcy Proposal, Issuance of Common Shares for Debt and Provides Operational Upda
March 22 2011 - 6:04PM
PR Newswire (Canada)
CALGARY, March 22 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE U.S./ CALGARY, March 22 /CNW/
- Sahara Energy Ltd. (TSXV: SAH) ("Sahara" or the "Company") today
announced the completion of payments pursuant to the bankruptcy
proposal approved by creditors of the Company on June 22, 2010 (the
"Proposal"). In connection with the Proposal, the Company made cash
payments totalling $580,845.56 and issued 7,424,152 common shares
(the "Common Shares") in the capital of the Company to satisfy
claims of its secured and unsecured creditors in accordance wit the
terms of the Proposal. Sahara has also completed its previously
announced issuance of 967,029 Common Shares in full satisfaction of
certain debts, including applicable interest, aggregating
$105,164.38 (the "Shares for Debt Transaction"). The Common Shares
issued as consideration for cancelling the debt were issued at a
deemed price per Common Share of $0.10875, being the discounted
market price as determined by the closing price of the Common
Shares on the TSX Venture Exchange ("TSXV") on January 6, 2011, the
day before the initial announcement of the Common Share issuance by
Sahara. Following issuance of the Common Shares pursuant to the
Proposal and the Shares for Debt Transaction, Sahara will have
72,730,568 Common Shares issued and outstanding. Operational Update
Sahara has reactivated four 100% owned oil wells at Lloydminster
which are currently producing approximately 60 barrels of oil per
day ("bopd"). Sahara's current total production is 70 bopd. Sahara
owns land in the Lloydminster/Blackfoot area allowing for six 100%
oil drilling locations and one 50% oil drilling location. Sahara
has farmed out two 100% owned wellbores, for oil recompletions in
the Hayter area of Alberta. The farmout agreement allows for the
industry partner to recomplete, equip and put on production the two
wellbores by spending up to $870,000. The operator will be
completing the two wellbores using the Penedrill "MaxPerf"
technology. Sahara will retain a 5% to 15% sliding scale royalty
before payout converting to a 25% working interest after payout.
Sahara owns 100% of 120 additional acres at Hayter allowing for 3
more oil drilling locations. Forward Looking Statements Certain
information regarding Sahara set forth in this news release,
including with respect the operations of Sahara, may constitute
forward-looking statements under applicable securities laws and
necessarily involve substantial known and unknown risks and
uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond
Sahara's control, including without limitation, risks associated
with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, industry
conditions, volatility of commodity prices, environmental risks,
the lack of availability of qualified personnel or management,
inability to obtain drilling rigs or other services, capital
expenditure costs, including drilling, completion and facility
costs, unexpected decline rates in wells, wells not performing as
expected, stock market volatility, delays resulting from our
inability to obtain required regulatory approvals and ability to
access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada and the United
States, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are
interpreted and enforced, increased competition, fluctuations in
foreign exchange or interest rates, stock market volatility and
market valuations of companies with respect to announced
transactions and the final valuations thereof. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Sahara's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements.
Additional information on these and other factors that could affect
Sahara's operations and financial results are included in reports
on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). The
forward-looking statements contained in this document are made as
at the date of this news release and Sahara does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities laws. Neither 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. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/March2011/22/c5559.html
p Peter J. Boswellbr/ Chief Executive Officerbr/ Sahara Energy
Ltd.br/ Telephone: (403) 232-1359br/ Fax: (403) 232-1307br/
E-mail: a
href="mailto:pete@saharaenergy.ca"pete@saharaenergy.ca/a /p
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