Advantage Announces Closing of Non-Core Asset Disposition to Questfire and a Revised Credit Facility

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[{"type":"text","content":"\n\n\n\n\n\n(TSX: AAV, NYSE: AAV)\n\n\nCALGARY, April 30, 2013 /CNW/ - Advantage Oil & Gas Ltd. (\"Advantage\" or\n the \"Corporation\") (TSX: AAV) (NYSE: AAV) is pleased to announce the\n closing of the previously announced transaction with Questfire Energy\n Corp. (\"Questfire\") (a TSX-V listed company) for the sale of\n substantially all of Advantage's remaining non-core assets. The\n consideration received by Advantage consisted of $40.2 million of cash,\n a $32.6 million Convertible Senior Secured Questfire Debenture (the\n \"Questfire Debenture\") and 1.5 million Class B Shares of Questfire (the\n \"Class B Shares\"). The net cash proceeds from this transaction will be\n used to reduce outstanding bank indebtedness. Advantage retains an\n option to appoint two board members to the Board of Directors of\n Questfire.\n\n\nAdvantage's credit facilities have been revised to $230 million with the\n next annual review extended to June 2014. Pro-forma bank debt at March\n 31, 2013 is approximately $125 million resulting in an undrawn credit\n facility of $105 million (bank indebtedness of approximately $165\n million as at March 31, 2013 reduced for cash consideration received\n from the sale of non-core assets to Questfire). Our credit facilities\n have also been amended to extend the duration of commodity hedging for\n up to four years and increase the permitted production available to\n hedge. Advantage is allowed to hedge up to 65% of total estimated crude\n oil and natural gas production on an annual basis over the first three\n years and 50% over the fourth year.\n\n\nAdvantage is now a pure play company focused on our signature Glacier\n Montney property. Advantage's other major assets now includes our 45%\n interest in Longview Oil Corp. and the Questfire Debenture and Class B\n Shares.\n\n\nAdvisoryThe information in this press release contains certain forward-looking\n statements, including within the meaning of the United States Private\n Securities Litigation Reform Act of 1995. These statements relate to\n future events or our future intentions or performance. All statements\n other than statements of historical fact may be forward-looking\n statements. Forward-looking statements are often, but not always,\n identified by the use of words such as \"seek\", \"anticipate\", \"plan\",\n \"continue\", \"estimate\", ...

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