TORONTO, Oct. 21, 2016 /CNW/ - Pacific Exploration
& Production Corporation (the "Company") is pleased to
provide an update with respect to its previously announced plan of
compromise and arrangement (the "Plan") pursuant to the
Companies' Creditors Arrangement Act (Canada) in connection with its comprehensive
restructuring transaction (the "Creditor/Catalyst Restructuring
Transaction").
As previously announced on October 11,
2016, all of the conditions precedent to completion of the
Creditor/Catalyst Restructuring Transaction have been satisfied or
are in a position to be satisfied, but for the release of a lien
created by an order of the Colombian Superintendence of
Corporations (the "Superintendence") made on June 10, 2016. The Company has made submissions
to the Superintendence in respect of this lien and is waiting for a
decision. The Company will issue a further news release at such
time as the decision is made in order to confirm timing of
closing of the Creditor/Catalyst Restructuring.
The Company confirms that the share or cash distributions under
the Plan as set out in the Company's news release of September 26, 2016 remain unchanged. The Toronto
Stock Exchange has conditionally approved the listing of the
Company's common shares upon implementation of the
Creditor/Catalyst Restructuring Transaction, which listing is
subject to the satisfaction of customary listing conditions.
Shareholder Contact Information
Shareholders are reminded that any questions or concerns can be
directed to the Company at ir@pacificcorp.energy.
Noteholder Contact Information
Noteholders with questions about the Plan are encouraged to
contact Kingsdale Shareholder Services at 1-877-659-1821 toll-free
in North America or call collect
at 1-416-867-2272 outside of North
America or by email at
contactus@kingsdaleshareholder.com.
About Pacific:
Pacific Exploration & Production Corp. is a Canadian
public company and a leading explorer and producer of natural gas
and crude oil, with operations focused in Latin America. The Company has a diversified
portfolio of assets with interests in more than 60 exploration and
production blocks in various countries including Colombia, Peru, Guatemala, Guyana and Belize. The Company's strategy is focused on
sustainable growth in production & reserves and cash
generation. Pacific Exploration & Production is committed to
conducting business safely, in a socially and environmentally
responsible manner.
Advisories:
Cautionary Note Concerning Forward-Looking
Statements
This news release contains forward-looking statements. All
statements, other than statements of historical fact, that address
activities, events or developments that the Company believes,
expects or anticipates will or may occur in the future, including,
without limitation, statements regarding the Plan (including share
distributions under the Plan), conditions to implementation of the
Plan (including the release by the Superintendence of the lien
created by the Order), timing of the implementation of the Plan
(including whether the Company will exit from creditor protection)
and effect of the Plan on the Company are forward-looking
statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information
currently available to the Company. Forward-looking statements are
subject to a number of risks and uncertainties that may cause the
actual results of the Company to differ materially from those
discussed in the forward-looking statements, and even if such
actual results are realized or substantially realized, there can be
no assurance that they will have the expected consequences to, or
effects on, the Company. Factors that could cause actual results or
events to differ materially from current expectations include,
among other things: the Company's ability to continue as a going
concern upon completion of the Plan; volatility in market prices
for oil and natural gas; a continued depressed oil price
environment with a potential of further decline; default under the
Company's credit facilities and/or the Company's senior notes due
to a breach of covenants therein; amounts becoming due and payable
under the credit facilities and/or the senior notes,
notwithstanding the entering into of support arrangements, whether
through the actions of holders of senior notes or the trustee under
the respective senior note indentures or otherwise; the impact of
events of defaults in respect of the credit facilities and/or
senior notes on other material contracts of the Company, including
but not limited to, cross-defaults resulting in acceleration of
amounts payable thereunder or the termination of such agreements
notwithstanding the protection obtained by the Company under the
Companies' Creditors Arrangement Act proceedings in Canada and/or sought in proceedings under
other applicable jurisdictions (including Colombia and the
United States); failure of the Company to complete the
Creditor/Catalyst Restructuring Transaction, which is subject to a
number of conditions (including the release by the Superintendence
of the lien created by the Order) and other risks and
uncertainties; failure to satisfy any terms or conditions of any
other agreement with the Company's creditors on a proposed
restructuring; any negative impact on the Company's current
operations as a result of the Creditor/Catalyst Restructuring
Transaction or failure to implement the Plan or reach any other
agreement with creditors; perceptions of the Company's prospects
and the prospects of the oil and gas industry in Colombia and the other countries where the
Company operates and/or has investments as the result of the
entering into of the Creditor/Catalyst Restructuring Transaction or
otherwise commencing voluntary insolvency proceedings or otherwise;
inability to obtain a listing on a stock exchange acceptable to the
Company, the sponsor of, and certain creditors supporting, the
Plan; the effect of the Creditor/Catalyst Restructuring Transaction
on the Company's business and operations; political developments in
Colombia, Guatemala, Peru, Guyana
and Mexico; liabilities inherent
in oil and gas operations; uncertainties associated with estimating
oil and natural gas reserves; competition for, among other things,
capital, acquisitions of reserves, undeveloped lands and skilled
personnel; incorrect assessments of the value of acquisitions
and/or past integration problems; geological, technical, drilling
and processing problems; fluctuations in foreign exchange or
interest rates and stock market volatility; delays in obtaining
required environmental and other licences; uncertainty of estimates
of capital and operating costs, production estimates and estimated
economic return; the possibility that actual circumstances will
differ from estimates and assumptions; uncertainties relating to
the availability and costs of financing needed in the future;
changes in income tax laws or changes in tax laws, accounting
principles and incentive programs relating to the oil and gas
industry; and the other factors discussed under the heading
entitled "Risk Factors" and elsewhere in the Company's AIF dated
March 18, 2016 filed on SEDAR at
www.sedar.com and in the circular dated July
8, 2016 prepared in connection with the meeting to approve
the Plan. Any forward-looking statement speaks only as of the date
on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to the
inherent uncertainty therein.
Translation
This news release was prepared in the English language and
subsequently translated into Spanish. In the case of any
differences between the English version and its translated
counterparts, the English document should be treated as the
governing version.
SOURCE Pacific Exploration and Production Corporation