CALGARY, June 6 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS) announces that it has accepted an offer from a Calgary based petroleum company to purchase all of Mystique's oil and gas assets and tax pools for gross proceeds of 19.2 million dollars. The effective date of the purchase is June 1, 2006. Closing of the transaction is anticipated to occur during the first week of July, 2007. Net proceeds from the sale of the assets will be used to eliminate Mystique's debt to its primary lender and other secured creditors. The remaining proceeds will be used to pay down the debt owed to unsecured creditors.
The Alberta Court of Queen's Bench (the "Court") had provided Mystique creditor protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA") on April 24th, 2007. The order granting CCAA protection expires on July 17th, 2007.
In addition to closing the transaction and completing the claims process under the CCAA process, Mystique will be preparing a plan of arrangement whereby all or substantially all of the remaining proceeds of the asset sale will be distributed to the unsecured creditors on a pro rata basis. The plan of arrangement must be approved by the Court. It is unlikely that there will be any remaining value to be allocated to shareholders.
This transaction is the conclusion of a process in which Mystique engaged GMP Securities LP to seek strategic alternatives for Mystique.
Disclaimers
Certain information regarding Mystique in this news release including management's assessment of future plans and operations and the timing thereof, may constitute forward-looking statements under applicable securities laws and may necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain services, delays resulting from or inability to obtain required regulatory approvals, the ability to access sufficient capital from internal and external sources and the uncertainty involved in Court proceedings and the implementation of the Plan under the CCAA. As a consequence, Mystique's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward(equal sign)looking statements will transpire or occur, or, if any of them do so, what benefits Mystique will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as of the date this news release and Mystique does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
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