Press release from TheNewswire.ca
Sunridge Energy Corporate Update
Monday, March 25, 2013
Sunridge Energy Corporate Update14:12 EDT Monday, March 25, 2013(via Thenewswire.ca) Sunridge Energy Corp. ("Sunridge" or the "Company") (SRG: TSX-V) March 25, 2013 would like to provide its shareholders with a comprehensive update on the Company. Over the past 8 months Sunridge has experienced both significant successes and setbacks. Management and the Board of Directors fully understand the issues that need to be dealt with to move the Company forward and plan to be aggressive in implementing changes needed to benefit from the successes experienced over the past 8 months. Key Points Summary: -Reduced production at the two Millet property discovery wells -Production ceased at Lavoy gas well -North Central Field Discovery joint venture -CES heavy oil agreement terminated -Negotiations to Eliminate Insider Gross Overrides on assets -Changes in management and appointment of advisory board members -Seeking shareholder approval for up to a 4 for 1 share consolidation at the upcoming AGM Millet Oil Prospect (North Central Field Discovery) On November 8, 2012 the Company announced that production from its two discovery wells at Millet had stabilized producing a combined rate of 100 bbl/day (net 80 bbl to SRG). Shortly thereafter both wells experienced significant production problems, which have negatively impacted the company's cash flow during Q4/12 and Q1/13. The problems appear to be linked to geo-mechanical issues which followed the fracture treatments that were emplaced in both of the two new-pool, exploratory wellbores. The company believes the restriction of daily production can be remedied by an often utilized industry method, but has been unable to implement these measures with our current lack of available capital. Third Well (North Central Field Discovery) The company currently has a joint venture agreement in place on its third well at its North Central Field Discovery as announced on November 26, 2012. The Company does not anticipate the commencement of this third well prior to breakup. Lavoy Gas Prospect The gas well at Lavoy has become uneconomic and production has ceased awaiting higher natural gas prices. CES (6POH) Bitumen Extraction Process Agreement The Company has been unable to negotiate an extension of its exclusive agreement with Current Environmental Solutions LLC ("CES") announced on August 29, 2011. The agreement allowed Sunridge a five year exclusive licence to use CES's proprietary technology within the Alberta Oil Sands to extract heavy oil. This agreement also contained a stipulated time period of 18 months within which to commence field operations and/or regulatory application processes. The agreement therefore expired on February 25, 2013. The company was unable to secure the farm-in rights from any third party mineral rights owners on lands that were deemed technically suitable for the planned and designed pilot project. Additionally, in 2012 the City of Fort McMurray (in conjunction with provincial regulatory bodies) emplaced a zone of restriction (LARP) surrounding the city limits to further ponder the impact of planned oil sands development upon the future local/urban expansion plans for the area. This further impeded and delayed a successful undertaking of this ambitious project. Elimination of Insiders Gross Overrides ("GORRs") The company is currently negotiating the elimination of certain GORRs held by insiders on some of the company's assets. Once completed this will have an immediate positive impact on cash flows to Sunridge. Management Changes -.Resignation of Scott Alanen CA as CFO. The company would like to thank Mr. Alanen for his dedication and service to the company. -.Appointment of David Gurvey as CFO. Mr. Gurvey is a well-rounded CFO with experience in the resource and oil and gas sectors. He is also skilled in Corporate Governance and policies. -.Appointment of Lorne Hill as Interim President. -.Appointment of Gary Schellenberg as Managing Director. Mr. Schellenberg brings with him a wealth of knowledge and expertise in financing and reorganizations of both public and private companies. -.Appointment of Jerry Bella CGA and Geoff Schellenberg B. Comm to the Financial Advisory Board. Both individuals will be assisting in the restructuring of the company and its debt. Management's Focus Moving Forward Management's main focus in the short term includes reducing current trade debt through the sale of non-core assets and negotiations with creditors to take a reduced cash payment or shares in lieu of cash. Secondly, management plans to correct the current production problems on core assets in order to optimize the cash flow and profits and increase production through merger and acquisition opportunities. Annual General Meeting The company has set its AGM for June 6, 2013 to be held at 620 - 650 West Georgia St., Vancouver, BC at 10:00 AM pacific standard time. At the meeting the shareholders will be asked to approve a share consolidation of up to 4 old shares for 1 new share. Change of Administrative Address: All administrative and corporate items should now be sent to the following address: Suite 620 - 650 West Georgia St. PO Box 11604 Vancouver, BC V6B 4N9 ABOUT SUNRIDGE Sunridge is a junior oil and gas exploration and development company with production operations in the Province of Alberta. On behalf of the board, Gary Schellenberg Managing Director Forward-Looking Statements Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Sunridge cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Sunridge's control. Such factors include, among other things: risks and uncertainties relating to Sunridge's ability to complete the drilling of its second well, or that there will be production from any wells drilled. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Sunridge undertakes no obligation to publicly update or revise forward-looking information. 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. For further information please contact: Sunridge Energy Corp. 2900 First Canadian Centre 350 - 7th Avenue S.W. Calgary, AB T2P 3N9 Phone: 403-718-9591 Fax: 403-227-5983 E-mail: email@example.com Website: http://www.sunridge-energy.com Copyright (c) 2013 TheNewswire - All rights reserved.