CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - Avatar Energy Ltd. ("Avatar", "we", "us", "our" or the "Company") (TSX VENTURE:AVG) is pleased to announce its second quarter 2012 financial results. Copies of the financial statements and management discussion and analysis are available for review at www.sedar.com and on our website at www.avatarenergy.ca∩╗┐.
Second Quarter 2012 Highlights
Stable production of 80 barrels of oil equivalent ("BOE") per day from operations. The Pembina Cardium play continues to develop positively with better technology (such as slick water fracing) and reduced costs.
The Board of Directors of Avatar has decided to initiate a process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhancing shareholder value. The strategic alternatives considered may include, but are not limited to, an outright sale of the Company or a merger or other strategic transaction involving Avatar and a third party. The Board of Directors believes that the Company's shares trade at a significant discount to the value of the underlying assets, especially given its prospective Cardium oil drilling inventory and land position. The Company has retained CB Securities Inc. as its financial advisor to assist the Board of Directors with the process.
It is Avatar's current intention to not disclose developments with respect to its strategic alternatives process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary in accordance with applicable law.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Board's and management's assessment of future plans and operations, potential results of the strategic review process, including the possibility of entering into a potential strategic transaction, potential enhancement of shareholder value, and disclosure intentions with respect to the strategic alternative review process. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company 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 Company is subject include, but are not limited to, the availability of potential transactions and interest from third parties in pursuing potential transactions with Avatar; the exploration of strategic alternatives may not result in any agreement or transaction, or if an agreement or transaction is entered into, it may not be successful or on attractive terms, 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; and changes in legislation and the regulatory environment. The forward- looking statements contained in this press release are made as of the date hereof and the Company 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.
Avatar converts certain natural gas volumes to BOEs on the basis of one barrel to six thousand cubic feet and daily production is presented as barrels of BOE per day. BOEs may be misleading, particularly if used in isolation. A conversion ratio of one barrel of crude oil or natural gas liquids to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent value equivalency at the wellhead.
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.