NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Tamarack Valley Energy Ltd. (TSX VENTURE:TVE) ("Tamarack" or the "Company") is
pleased to announce that it has entered into a pre-acquisition agreement (the
"Agreement" or "Transaction") providing for the acquisition by Tamarack of all
the issued and outstanding common shares of a private company, Echoex Ltd.
("Echoex"). Echoex has a material position in the Redwater area of Alberta and
along the Redwater Viking Trend where the majority of its production and
reserves are focused in the highly economic shallow Viking oil formation. 


Under the terms of the Transaction, Echoex shareholders shall receive, for each
Echoex share held, at the election of the holder: i) $1.6328 cash; or ii) 5.461
Tamarack common shares (a "Tamarack Share"); or iii) a combination of cash and
Tamarack Shares. The maximum cash amount payable to Echoex shareholders shall be
$10.0 million. Tamarack will also assume the debt of Echoex, estimated at $24.9
million, after taking into account anticipated Transaction costs, as at February
28, 2012. Based on the agreed upon exchange ratio the total Transaction value is
approximately $62.9 million, including the assumption of net debt. The
Transaction will be funded in part through the share consideration and the
available credit facility of the combined entity. 


Concurrent with the acquisition, Tamarack has entered into a $16.5 million
bought deal financing to accelerate its 2012 oil focused capital drilling
program.


Summary of the Transaction 

Through the Transaction, Tamarack is acquiring high quality, high netback light
oil assets, located predominantly in the Redwater area of Alberta and along the
Redwater Viking trend. Production and reserves are weighted towards Viking oil
and materially enhance Tamarack's exposure to this low cost, highly economic,
repeatable light oil resource play. Echoex's two primary Viking oil properties,
Redwater and Westlock, are on trend with Tamarack's existing shallow Viking oil
play in Foley Lake and have significant growth and upside potential, adding over
60 ready to drill horizontal Viking locations and the potential to add
considerable drilling scope on undeveloped Viking oil lands. There are also
future opportunities for enhanced oil recovery through secondary techniques.
Tamarack is acquiring a 100% working interest in 8,196 net acres in Redwater and
a 100% working interest in a further 12,800 net acres along trend, offsetting
vertical production, at Westlock. The estimated production to be acquired at the
time of closing will be 980 boe/d (46% Oil and NGLs). The Redwater asset
provides compelling full-cycle economics and is analogous to Tamarack's current
shallow Viking Foley Lake property, while the Westlock asset provides exposure
to a prospective Viking oil resource with significant un-booked potential. 


The Transaction also provides Tamarack with additional upside in a Viking oil
play in the Esther area of Alberta in which Echoex holds interests in 2,880 net
acres and provides Tamarack with an additional 12,416 net acres in the Manitou
Lake area of Saskatchewan. The Manitou lands are adjacent to existing Tamarack
heavy oil prospective lands and provide excellent opportunity to increase
Tamarack's inventory of heavy oil locations. 


The Transaction has the following characteristics:



--  Total Transaction price (including net debt) $62.9 million 
--  Production(1) 980 boe/d (46% Oil + NGLs) 
--  Proved reserves(2) 3.2 MMboe (56% Oil + NGLs) 
    --  Proved Developed Producing 1.8 MMboe (41% Oil + NGLs) 
    --  Proved Undeveloped 1.4 MMboe (77% Oil + NGLs) 
--  Proved plus probable reserves(2) 4.4 MMboe (57% Oil + NGLs) 
--  Proved plus probable RLI(3) 12.2 years 
--  Operating netback(4) $36.92/boe



Net undeveloped land is internally valued at an estimated $8.9 million, based on
a conservative $200/acre for oil prospective acreage and $50/acre for the
remaining acreage. Net of undeveloped land of 80,978 net acres, the implied
Transaction metrics are as follows: 




--  Production $55,128/boe/d
    
    
--  Proved reserves $17.14/boe
    
    
--  Proved plus probable reserves $12.35/boe



The Transaction is forecast by Tamarack to be accretive on 2012 cash flow per
share and 2012 production per share, on a fully diluted weighted average basis,
after accounting for the shares issued in the concurrent Offering. Tamarack
estimates that based on both companies third party reserve reports dated
December 31, 2011, that this transaction is 23.3% accretive on proved reserves
per share and 6.0% accretive on NPV10, on a fully diluted basis, after
accounting for the shares issued in the concurrent Offering.


Upon closing of the Transaction, Tamarack is pleased to announce that Mr.
Sheldon B. Steeves will be appointed to the Company's Board of Directors. As
President and CEO of Echoex and former Chief Operating Officer and Executive
Vice President of Renaissance Energy Ltd., Mr. Steeves will bring considerable
experience to Tamarack.


Strategic Rationale 

The Transaction represents the successful continuation of Tamarack's disciplined
business plan to build an inventory of high quality light oil assets that can
provide significant development upside to complement their existing four oil
focused core plays. Tamarack will apply its expertise at developing horizontal
oil resource plays to this newly expanded shallow Viking oil position along the
Redwater trend. Tamarack believes the Redwater Viking oil play can be expanded
further through land acquisitions, increased drilling density and enhanced oil
recovery techniques.


After giving effect to the Transaction, Tamarack will have materially expanded
its Viking oil exposure and diversified geological risk across a broader suite
of highly economic oil projects. Post transaction, Tamarack will have an
inventory of approximately 238 un-risked oil drilling locations, which positions
the Company for continued low risk growth on an absolute and per share basis. 


In summary, the highlight benefits of the Transaction to Tamarack include:



--  Accretive to Tamarack on all financial and operational metrics 
--  Material increase in oil weighting from Tamarack's current weighting of
    approximately 32% to greater than 50% based on an oil focused drilling
    program in 2012 
--  Enhances Tamarack's existing cash flow base to support continued
    sustainable organic growth on an absolute and per share basis 
--  Increases Tamarack's proved plus probable reserves to a before tax net
    present value discounted at 10% of over $174 million weighted 84% to oil
    and natural gas liquids(5) 
--  Increases Tamarack's inventory of unrisked oil drilling locations to 238
--  Increases Tamarack's oil focused shallow Viking exposure and provides
    significant low risk development upside



Transaction Details

Tamarack and Echoex have signed an Agreement pursuant to which Tamarack and
Echoex have agreed that the Transaction will be conducted by means of an exempt
takeover bid. Tamarack will pay a maximum of $10.0 million in cash and issue
between 93.7 million and 127.2 million Tamarack Shares to the shareholders of
Echoex, in exchange for all of the outstanding shares of Echoex, subject to the
terms and conditions of the Agreement. 


The Board of Directors of Echoex have unanimously approved the Transaction and
recommended that the holders of Echoex shares tender their shares to the bid.
Management, directors and certain shareholders of Echoex representing
approximately 85% of the issued and outstanding shares have agreed to tender
their shares to the exempt takeover bid. In addition, certain shareholders have
agreed to enter in to escrow agreements whereby their shares will be escrowed
for three months following the closing of the Transaction. 


The Agreement provides for non-solicitation covenants, subject to the fiduciary
obligations of the Board of Directors of Echoex and the right of Tamarack to
match any Superior Proposal (as defined in the Agreement). The Agreement
provides for a non-completion fee of $1.98 million in the event the Transaction
is not completed in certain circumstances. The Agreement provides that
completion of the Transaction is subject to certain conditions, including the
receipt of all required regulatory approvals and the approval of the TSX Venture
Exchange ("TSXV"). The Transaction is anticipated to close on or about April 17,
2012.


Dundee Securities Ltd. is acting as exclusive financial advisor to Tamarack. RBC
Capital Markets is acting as exclusive financial advisor to Echoex. 


Bought Deal Financing

In connection with the Transaction, Tamarack has entered into an agreement with
a syndicate of underwriters led by Dundee Securities Ltd. and including AltaCorp
Capital Inc., Canaccord Genuity Corp and Peters & Co. Limited (collectively, the
"Underwriters"), pursuant to which the Underwriters have agreed to purchase for
resale to the public, on a bought deal basis, 66,000,000 subscription receipts
of Tamarack ("Subscription Receipts") at a price of $0.25 per Tamarack
Subscription Receipt (the "Offering Price") to raise gross proceeds of
approximately $16,500,000. The net proceeds from the sale of Subscription
Receipts will be held in escrow pending the completion of the Transaction. If
the Transaction is completed on or before April 30, 2012, or such later date as
may be agreed to by the Underwriters, the net proceeds from the sale of the
Subscription Receipts will be released to Tamarack and each Subscription Receipt
will be exchanged for one Tamarack Share for no additional consideration. If the
Transaction is not completed by Tamarack on or before April 30, 2012, and the
Underwriters have not agreed to extend such date, or the Agreement is terminated
at an earlier time, then the purchase price for the Subscription Receipts shall
be returned to subscribers, together with a pro rata portion of the interest
accrued on the subscription funds attributable to the Subscription Receipts.
Tamarack has also granted the Underwriters an overallotment option exercisable
at any time on, or for a period of 30 days following the closing of the
Offering, to acquire an additional 9,900,000 Subscription Receipts to cover
over-allotments, if any, and for market stabilization purposes, at the Offering
Price, for additional aggregate gross proceeds of up to $2,475,000. If the
Over-Allotment Option is fully exercised, gross proceeds from the Offering will
be $18,975,000. The net proceeds of the Offering will be used to initially
reduce indebtedness, fund the accelerated 2012 drilling program and for general
corporate purposes.


Completion of the Offering is subject to certain conditions including the
receipt of all necessary regulatory approvals, including the approval of the
TSXV. The Subscription Receipts will be offered in each of the provinces of
Alberta, British Columbia and Ontario (and such other jurisdictions in Canada as
may be agreed to by Tamarack and the Underwriters) by way of a short form
prospectus. 


Closing of the Offering is expected to occur on or about April 17, 2012.

(1) Anticipated production at the time of closing of the Transaction.

(2) Based on Echoex's third party engineering report prepared by GLJ Petroleum
Consultants Ltd. in accordance with NI 51-101 requirements and dated December
31, 2011, on gross reserves which means Echoex's working interest reserves
before the calculation for royalties, and before the consideration of Echoex's
royalty interest reserves. 


(3) Based on production of 980 boe/d.

(4) Based on Edmonton par pricing of $80/bbl, $2.20/GJ AECO and C$/US$ exchange
ratio of 1.0.


(5) The estimated values disclosed do not represent fair market value.

About Tamarack Valley Energy Ltd. 

Tamarack is an oil and gas company involved in the identification, evaluation
and operation of resource plays in the western Canadian sedimentary basin. The
Company uses a rigorous, proven modeling process to carefully manage risk and
identify growth opportunities and has assets at Lochend, Garrington/Harmattan,
Buck Lake, Foley Lake and Quaich areas in Alberta; southeast of Lloydminster in
Saskatchewan; and at Wilder in northeast British Columbia.


Unit Cost Calculation and Other Terminology

For the purpose of calculating unit costs, natural gas volumes have been
converted to a barrel of oil equivalent ("boe") using six thousand cubic feet
equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is
based upon an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. This
conversion conforms with Canadian Securities Regulators National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Boe's
may be misleading, particularly if used in isolation. Finding and Development
costs and netbacks have been calculated in the required manner under NI 51-101.
The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during that year in estimated future
development costs generally will not reflect total finding and development costs
related to reserves additions for that year.


Forward Looking Information

This press release contains certain forward-looking statements within the
meaning of applicable securities laws, including statements relating to benefits
of the Transaction to Tamarack including production, land inventory, and value,
reserve additions, reserve life index, impact on cash flow, production and
reserves per share, impact on asset mix, corporate netbacks and operational
activities and results. The use of any of the words "expect", "anticipate",
"continue", "estimate", "may", "will", "should", "believe", "intends",
"equates", "forecast", "plans", "guidance" and similar expressions are intended
to identify forward-looking statements or information. The statements are based
on assumptions relating to historical information, due diligence on the
Transaction, the results of past operations and activities in the planned areas
of drilling as well as information from consultants. The assumptions for the
Transaction and financing is that they will close as expected with all the
conditions being satisfied in the time anticipated.


Although management considers these assumptions to be reasonable based on
information currently available to it, undue reliance should not be placed on
the forward-looking statements because Tamarack can give no assurances that they
may prove to be correct.


By their very nature, forward-looking statements involve inherent risks and
uncertainties (both general and specific) and risks that forward-looking
statements will not be achieved. These risks and uncertainties include, but are
not limited to: risks associated with the oil and gas industry (e.g. operational
risks in development, exploration and production; testing results not being
sustained during ongoing operations, delays or changes in plans with respect to
exploration or development projects or capital expenditures; unexpected
liabilities; commodity prices, the uncertainty of estimates and projections
relating to production and reserve estimates, land value, cash generation, costs
and expenses; health, safety, litigation and environmental risks and access to
capital. Due to the nature of the oil and natural gas industry, drilling plans
and operational activities may be delayed or modified to react to market
conditions, results of past operations, regulatory approvals or availability of
services causing results to be delayed. The primary risks associated with
closing the Transaction relate to the financing and the risks to the financing
relate primarily to material adverse changes. 


The forward-looking statements contained in this news release are made as of the
date hereof and the Company does not undertake any obligation to update publicly
or to revise any of the included forward-looking statements, except as required
by applicable law. The forward-looking statements contained herein are expressly
qualified by this cautionary statement. 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. The TSX has neither approved nor
disapproved the contents of this press release.


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