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Porto Announces Review of Strategic Alternatives to Maximize Shareholder Value
THE WOODLANDS, TX , Oct. 7, 2013 /CNW/ - Porto Energy Corp., (" Porto " or the " Compa...
About this update from Peak Discovery Capital Ltd
[{"type":"text","content":"\n\n\nTHE WOODLANDS, TX, Oct. 7, 2013 /CNW/ - Porto Energy Corp., (\"Porto\" or the \"Company\") (TSXV:PEC), today announced that that in light of its ongoing capital\n requirements necessary to advance its oil and gas exploration program\n in Portugal, it has formed a Special Committee of independent directors\n and initiated a strategic review process to identify, examine and\n consider a range of strategic alternatives available to Porto, with a\n view to preserving and maximizing shareholder value. This process could\n result in a sale of the Corporation, a private placement or public\n financing through the issuance of debt, equity or a combination of\n both, a sale of a material portion of the Corporation's assets, a\n merger, business combination or a corporate reorganization, among other\n alternatives. The Special Committee has retained Black Spruce Merchant\n Capital Corp. as its financial advisor to assist in the strategic\n review process.\n\n\nCorporate Highlights\n\n\nPorto currently has a working capital balance of approximately $1.3\n million and a Portuguese income tax pool of approximately $130.0\n million at May 31, 2013.  Included in these tax pools are non-capital\n losses available to carry forward to future years of approximately\n $37.3 million.\n\n\nThe Company's independent resource evaluation (the \"Report\") performed\n by Dallas, Texas-based Netherland, Sewell & Associates, Inc. (\"NSAI\")\n effective December 31, 2012 and dated January 10, 2013, assigned a P50\n risked recoverable Contingent Resources associated with the Company's\n Jurassic reef and other exploration prospects of approximately 44 mmboe\n and a P50 risked recoverable Prospective Resource mainly attributable\n to the Company's Lias Resource and Presalt Conventional prospects of\n approximately 637 mmboe (535 mmboe on a net working interest basis).\n\n\nAs stated in the Company's January 31, 2013 press release, work to\n characterize the Jurassic Lias resource play included finalized\n aeromagnetic data over the blocks, the drilling and analysis of 23\n shallow wells and the development of a Lias deposition model that\n greatly increased the Company's understanding of the Lias marls in the\n central and northern blocks.  This work underpinned the Report by NSAI\n and points to a very prospective unconventional resource p...