CALGARY, July 11, 2012 /PRNewswire/ - (TSX-V: PFC)
- PetroFrontier Corp. ("PetroFrontier") announces that it has
received a notice of termination from Macquarie Capital Markets
Canada Inc. ("Macquarie") terminating its obligations pursuant to
the Underwriting Agreement made effective June 20, 2012 (the "Underwriting Agreement"),
whereby Macquarie had agreed to purchase on a bought deal basis
15,000,000 subscription receipts at a price of $1.00 per subscription receipt. The notice
of termination received from Macquarie did not provide the reason
for Macquarie terminating its obligations under the Underwriting
Agreement. Management of PetroFrontier is of the view that
Macquarie did not have a valid legal reason to terminate the
Underwriting Agreement and PetroFrontier is currently reviewing it
options in this regard.
Financial Update
Pursuant to the recently announced joint venture between Statoil
Australia Oil and Gas AS ("Statoil") and PetroFrontier, each of the
parties has already contributed US$15
million to fund the 2012 capital program. Management
believes PetroFrontier has sufficient capital on hand to fund
operations throughout 2012. However, additional capital will
be required in order to fund 2013 operations including
PetroFrontier's remaining commitment of US$10 million under the Phase I joint exploration
program with Statoil. Management is currently considering
alternative sources of financing to replace some or all of the
funds that would have been raised pursuant to the Underwriting
Agreement.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in
the exploration, acquisition and development of both conventional
and unconventional onshore petroleum assets in Australia's Southern Georgina Basin. Founded
in 2009, PetroFrontier is one of the first companies to undertake
onshore exploration in the Southern Georgina Basin in Australia's Northern Territory.
PetroFrontier's head office is in Calgary, Alberta and its operations office is
in Adelaide, South Australia. PetroFrontier's common
shares are listed on the TSX Venture Exchange under the symbol
"PFC".
Forward-Looking Statements
This press release may contain forward-looking information
that involves substantial known and unknown risks and
uncertainties, most of which are beyond the control of
PetroFrontier, including, without limitation, statements pertaining
to the Corporation reviewing its options pursuant to the
Underwriting Agreement, future operations and alternative sources
of financing. All statements included herein, other than
statements of historical fact, are forward-looking information and
such information involves various risks and uncertainties.
There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in PetroFrontier's disclosure documents on the SEDAR
website at www.sedar.com. Any
forward-looking statements are made as of the date of this release
and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise
them to reflect new events or circumstances.
Neither the 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.
SOURCE PetroFrontier Corp.