CALGARY, April 9 /CNW/ - Mystique Energy, Inc. ("Mystique" or the "Company") (TSXV: MYS) announces that Mystique's Board of Directors has initiated a formal process to pursue certain strategic alternatives for the Company in an effort to enhance shareholder value.
A Special Committee consisting of the four independent Mystique directors has been formed to manage the process. The Special Committee has engaged GMP Securities L.P. as Mystique's financial advisor to assist the Special Committee to identify and consider strategic alternatives and their potential to enhance shareholder value, including a possible merger, amalgamation, reorganization or takeover of Mystique, or the sale of some or all of the assets of the Company, or any other alternatives that are considered to be in the best interests of Mystique shareholders. There can be no assurance that a transaction of any kind will result.
The letter of intent for a potential merger with a publicly traded oil and gas company, that was announced in Mystique's press release dated 2007-03-13, has been terminated.
Following the sale of the Garrington assets, announced in a press release dated 2007-03-17, Mystique's proved plus probable ("P+P") reserves stand at 2270 Mboe, effective 2006-12-31. Based on December, 2006 production rates (not including Garrington), Mystique's P+P reserves life index ("RLI") is 13.5 years. Mystique present production rate is estimated to be approximately 420 boepd.
Mystique and its primary lender are working together to extend the period of the forbearance agreement, announced in Mystique's press release dated 2007-03-13, to allow for the strategic alternative process to be completed.
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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