CALGARY, July 17 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS) announces that it has closed the sale of its remaining oil and gas assets and tax pools ("Asset Sale") to a Calgary based petroleum company for gross proceeds of 19.2 million dollars. The effective date of the Asset Sale is June 1, 2007. Net proceeds from the Asset Sale will be used to eliminate Mystique's debt to its primary lender and other secured creditors. The remaining proceeds will be distributed to unsecured creditors.
The Alberta Court of Queen's Bench (the "Court") 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. An application for an extension to the order until October 15th, 2007 has been approved by the Court.
The extension until October 15th, 2007 will allow time for all adjustments under the terms of purchase and sale agreement of the Asset Sale to be concluded and for Mystique to prepare and submit to the Court, a plan of arrangement whereby all or substantially all of the remaining proceeds from the Asset Sale will be distributed to the unsecured creditors on a pro rata basis. The plan of arrangement must be approved by a requisite majority of the unsecured creditors and the Court.
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-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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