AVG Avidian Gold Corp

Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG) is pleased
to announce that, in furtherance to its previously announced strategic review
process, it has entered into a binding letter agreement to sell its working
interest in properties located in the Pembina Strawberry Creek area to an arm's
length third party for cash gross proceeds of $3.12 million, subject to
adjustment (the "Transaction"). The Transaction will close in two tranches with
the first tranche (for $1,120,000) expected to close on November 30, 2012 and
the second tranche (for $2,000,000) expected to close on or before February 15,
2013. The Transaction is subject to obtaining TSX Venture Exchange ("TSXV")
approval and other conditions customary in transactions of this nature.


The Corporation's Pembina Strawberry Creek properties consist of 4.25 gross
sections and 3.75 net sections of Cardium formation oil bearing acreage in the
Pembina area of Alberta and represent approximately 5% of Avatar's proved
reserves as at December 31, 2011 (after giving effect to recent dispositions)
and 27% of Avatar's non-current assets as at June 30, 2012.


The net proceeds from the Transaction will be used to repay all indebtedness
owing under Avatar's credit facility, satisfy other liabilities and for general
corporate purposes. A finder's fee of $124,800 will be paid to CB Securities
Inc. for services provided as financial advisor to the board of directors with
respect to the strategic review process.


On a post-Transaction basis, Avatar will continue to be listed on the TSXV and
will focus on its Pembina Brazeau properties while exploring other opportunities
in the Pembina Cardium light oil play that have long life high quality reserves
with repeatable drilling upside.


FORWARD LOOKING STATEMENTS

This press release contains forward looking statements. More particularly, this
press release contains statements concerning the completion of the Transaction
and the amount and use of proceeds therefrom. Although the Corporation believes
that the expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because the Corporation
can give no assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. The risks to which the Corporation is
subject include, but are not limited to, operational risks inherent in the
exploration, development and production of oil and gas; availability of
financing; general economic conditions and changes in the capital markets;
volatility of oil and gas prices; competition; changes in legislation and the
regulatory environment; and uncertainties involved in completion of the
Transaction, such as the satisfaction of any closing conditions any obtaining
any approvals that may be required from the TSXV. The forward looking statements
contained in this press release are made as of the date hereof and the
Corporation undertakes no obligations to update publicly or revise any forward
looking statements or information, whether as a result of new information,
future events or otherwise, unless required by applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Avatar Energy Ltd.
Mr. Alan D. Jack, P. Eng
President & Chief Executive Officer
(403) 517-8818


Avatar Energy Ltd.
Ms. Lorie J. Hynes, CA
Chief Financial Officer
(403) 517-8818

Avidian Gold (TSXV:AVG)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Avidian Gold (TSXV:AVG)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024