Tuscany Energy Announces Review of Strategic AlternativesPublish date: 12/02/2015
Calgary, Alberta, December 2, 2015
Tuscany Energy Ltd. (TUS-TSXV) announces that it has initiated a process to identify and examine strategic alternatives for the purpose of enhancing shareholder value. Such strategic alternatives may include, but are not limited to, a corporate sale, merger or other business combination, the sale of all or a material portion of Tuscany’s assets, or any combination of the foregoing.
Although not initiated in response to any specific proposal, the Board of Directors of the Company determined to initiate the strategic review process after receiving a number of recent inquiries from other oil and gas companies. Dundee Securities Ltd. has been retained by Tuscany to act as its exclusive financial advisor in connection with this comprehensive review and analysis of strategic alternatives.
It is the Company’s current intention not to disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. Tuscany cautions that there are no assurances or guarantees that the process will result in a transaction and that if a transaction is undertaken no assurances or guarantees may be given with respect to the type, terms or timing of such a transaction.
Tuscany Energy Ltd. is a heavy oil development and production company with reserves, land holdings and production in western Canada. The Company’s principal focus is the exploitation of oil resources in Saskatchewan and Alberta through horizontal drilling. The majority of the Company’s revenue is generated from oil sales in Saskatchewan.
Tuscany’s President and CEO Bob Lamond commented, “After receiving unsolicited inquiries from a number of highly-qualified industry parties, the Board of Directors has engaged Dundee to formally examine all strategic alternatives available to the Company. We are encouraged by this recent interest in Tuscany’s assets from outside parties, and this strategic review process will examine how to best enhance shareholder value.”
Lamond added, “Even in a weak oil price environment, Tuscany’s core Macklin and Evesham properties offer a large inventory of development horizontal drilling locations. Our recently announced discovery of a new Dina heavy oil pool at Winter, Saskatchewan, further validates the potential of the Company’s exploration portfolio, and there has also been substantial recent industry interest in exploring the Company’s Macklin Sparky property. Lastly, while many in our industry face an uncertain regulatory environment in Alberta, most of Tuscany’s core producing and exploration assets are located in Saskatchewan, and thus will not be affected by any potential Alberta royalty changes.”
Please refer to Tuscany’s website at www.tuscanyenergy.com for more information on the Company’s Evesham and Macklin fields and other prospects in Alberta and Saskatchewan.