TORONTO, Feb. 11, 2016 /PRNewswire/ - Pacific
Exploration & Production Corp. (TSX: PRE) (BVC: PREC) today
announced that the Company, together with its legal and financial
advisors and through the Independent Committee of the Board of
Directors, is actively working with its creditors pursuant to its
revolving credit facilities and note indentures to formulate a
comprehensive plan to address the current oil price environment and
ensure the long-term viability of its business. The Company
remains, and intends to remain, current with its suppliers, trade
partners and contractors. Normal operations continue in
Colombia and the other
jurisdictions within which the Company operates.
As part of the restructuring process, the Company and its
advisors are in active contact with interested parties. The Company
will continue to interact with these parties directly and refrain
from commenting on mischaracterizations made in the media.
The Company is being advised by Lazard Frères & Co. LLC,
Norton Rose Fulbright Canada LLP (Canada), Proskauer Rose LLP (U.S.), Zolfo
Cooper (U.S.) and Garrigues (Colombia). The Independent Committee is being
advised by Osler, Hoskin &
Harcourt LLP.
About Pacific:
Pacific 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 85
exploration and production blocks in seven countries including
Colombia, Peru, Guatemala, Brazil, Guyana, Mexico and Belize. Pacific Exploration
& Production is committed to conducting business safely, in a
socially and environmentally responsible manner.
The Company's common shares trade on the Toronto Stock
Exchange and La Bolsa de Valores
de Colombia under the ticker
symbols PRE, and PREC, respectively.
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 estimates and/or
assumptions in respect of production, revenue, cash flow and costs,
reserve and resource estimates, potential resources and reserves,
the Company's exploration and development plans and objectives and
the development of a plan to address the current environment) 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: failure to reach an agreement with
lenders (including holders of each series of the Company's notes)
to restructure the Company's capital structure; the terms and
conditions of any agreement with lenders on a proposed
restructuring; failure to satisfy any terms or conditions of
any agreement with the lenders on a proposed restructuring; any
negative impact on the Company's current operations as a result of
any proposed restructuring or failure to reach an agreement with
the lenders thereon; failure to satisfy the terms and conditions of
any one of the Company's waiver agreements with applicable
creditors or any other waiver, failure to obtain further extensions
of any such waivers, failure to obtain waivers of other covenants,
or failure to come to agreement on the minimum liquidity
requirements, if and when required; the terms of any waivers,
including the impact on the Company of any restrictions imposed
upon it in connection with any of waivers or any other waiver;
uncertainty of estimates of capital and operating costs, production
estimates and estimated economic return; the possibility that
actual circumstances will differ from the estimates and
assumptions; failure to establish estimated resources or reserves;
fluctuations in petroleum prices and currency exchange rates;
inflation; changes in equity markets; political developments in
Colombia, Guatemala, Peru, Brazil,
Papua New Guinea, Guyana and Mexico; changes to regulations affecting the
Company's activities; uncertainties relating to the availability
and costs of financing needed in the future; the uncertainties
involved in interpreting drilling results and other geological
data; and the other risks disclosed under the heading "Risk
Factors" and elsewhere in the Company's annual information form
dated March 17, 2015 filed on SEDAR
at www.sedar.com. 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