Oct. 15, 2009 (Filing Services Canada) -- Western Canada Energy Inc. (WCE - TSX Venture), has entered into a letter agreement with the Canadian Western Bank ("CWB") to defer monthly reductions to WCE's credit facility which were to have commenced on September 1, 2009. Under this agreement, the CWB agreed to extend the facility in the reduced amount of $3.55 million to October 8, 2009 with a further extension to November 2, 2009, contingent upon: (1) receipt of copies of purchase and sale agreements for selected WCE assets yielding total proceeds of at least $3.0 million, and (2) a written recommendation from a financial intermediary that current debenture holders will provide additional funds to WCE, supplemental to the proceeds referenced in (1) above, in an amount sufficient to repay and cancel the CWB credit facility. In compliance with condition (1) above, WCE has entered into agreements with two private companies to purchase selected WCE assets for total proceeds of $3.0 Million. This divestment will leave WCE with production of approximately 50 barrels of oil equivalent per day, a land base of approximately 50,000 gross acres and 20,000 net acres including lands in the Elmworth, Josephine and Worsley areas of northwestern Alberta and in the Boundary Lake area of northeastern British Columbia where WCE expects development of additional producing oil and natural gas assets.
Certain statements contained herein constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information please contact: Daniel P. O'Neill, Chief Executive Officer, or R. W. Shepherd, President, Chief Financial Officer, and Corporate Secretary, Western Canada Energy Ltd., Telephone (403) 266-0955; email: info@wcenergy.ca
Source: Western Canada Energy Ltd. (WCE - TSX-V) http://www.wcenergy.ca
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