CALGARY, March 13 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV: MYS) announces that it has executed a forbearance agreement with its primary lender ("Lender"). The Lender has agreed to refrain from exercising certain of its rights and remedies under the lending agreement between Mystique and the Lender to provide Mystique sufficient time to remedy a default with regard to Mystique's working capital deficiency.
Under the terms of the forbearance agreement, by 2007-03-23, Mystique must complete certain steps in its restructuring plan to satisfy the Lender that Mystique will remedy the default within a timeframe satisfactory to the Lender. Upon completion of these steps, the Lender may extend the period of the forbearance agreement. Mystique management is confident that the forbearance period will be extended allowing Mystique to successfully address its working capital deficiency.
The lender may also entertain a proposal from Mystique to extend additional funds to finance the tie-in of one well in the Wildcat Hills area. The well was drilled, completed and production tested in late 2006. The tie-in of this well would add an estimated 125 barrels of oil equivalent ("boepd") to Mystique's current production of 440 boepd, more than offsetting the 85 boepd reduction in production that resulted from the sale of Mystique's Garrington assets.
About Mystique
Based in Calgary, Mystique is involved in the exploration and exploitation of petroleum reserves in western Canada.
Disclaimers
Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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