TSX Venture Exchange: IKM-V
CALGARY, July 5, 2018 /CNW/ - Ikkuma Resources Corp.
(TSXV: IKM) ("Ikkuma" or the "Corporation") is
pleased to announce that it has entered into a purchase and sale
agreement (the "Purchase and Sale Agreement") on
July 4, 2018 to sell certain
midstream assets in the Alberta
foothills (the "Infrastructure Asset Sale") to an
undisclosed purchaser for a total cash consideration of
$23.0 million, subject to customary
adjustments. The Infrastructure Asset Sale is subject to standard
industry closing conditions, as well as approval from the
purchaser's Board of Directors and due diligence reviews.
The Infrastructure Asset Sale represents the initial stage of
the Corporation's plan to divest of non-core natural gas assets. As
previously announced on May 15, 2018,
Ikkuma entered into a non-binding letter of intent to sell certain
midstream assets for a purchase price of $30.0 million. A portion of the proposed
midstream asset sale outlined in the letter of intent, representing
$7.0 million of consideration, has
been retained by Ikkuma and will be included in the next stage of
the Corporation's natural gas divestiture program through a public
process with GMP FirstEnergy. Anticipated bids are expected to be
reviewed by the Corporation in the next 60 days.
Proceeds from the Infrastructure Asset Sale will be used to
reduce debt and to fund the Corporation's $12 million flow-through obligations.
The Infrastructure Asset Sale is expected to close on or before
August 31, 2018.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified growth-oriented public
oil and gas company listed on the TSX Venture Exchange under the
symbol "IKM", with holdings in both conventional and unconventional
projects in Western Canada. The
Corporation is focused in the Foothills Region of Western Canada with a team that has extensive
experience in the area with the unique skills at successfully
exploiting a complex and potentially prolific play type. Corporate
information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
statements or information. In particular, the press release
contains forward-looking statements and information relating to
completion of the Purchase and Sale Agreement; the use of proceeds
from the Infrastructure Asset Sale, including the expected focus of
the Corporation's capital expenditure program for 2018; and
additional potential sale of non-core production and infrastructure
assets through a public process. Although Ikkuma believes that the
expectations and assumptions on which the forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information because Ikkuma cannot give any assurance that they will
prove to be correct. The forward-looking statements and
information is based on certain key expectations and assumptions
made by management, including expectations and assumptions
concerning: the satisfaction of all conditions to the closing of
the Infrastructure Asset Sale and on the time frames contemplated;
the Corporation's ability to fund its flow-through obligations,
successful bidding, negotiation of terms and timing of review in
connection with its additional noncore production and
infrastructure assets; prevailing and future commodity prices,
exchange rate, interest rates, inflation rates, applicable royalty
rates and tax laws; future production rates and estimates of
operating costs; performance of existing and future wells; reserves
volumes; anticipated timing and results of capital expenditures in
carrying out planned activities; the state of the economy and the
exploration and production business; the regulatory framework
regarding royalties, taxes and environmental laws; results of
operations; performance; business prospectus and opportunities.
Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risk. These include but are not limited to the
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. We caution that the
foregoing list of risks and uncertainties is not exhaustive. The
recovery and reserve estimates contained in this press release are
estimates only and there is no guarantee that the estimated
reserves will be recovered.
In addition, the reader is cautioned that historical results are
not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward-looking
statement or information, whether as a result of new information,
future events or otherwise, unless so 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.
SOURCE Ikkuma Resources Corp.