FSC / Press Release
Lochaird Update
Calgary, Alberta CANADA, November 05, 2009 /FSC/ - Lochaird Energy Inc. (LEN - 0), ("Lochaird" or the "Corporation") has entered into a purchase and sale agreement (the "Asset Sale") effective September 30, 2009 for the sale of the majority of the Corporation's producing assets in Alberta. Closing of the proposed Asset Sale received unanimous approval of Lochaird shareholders by special resolution at the annual and special meeting of shareholders held on November 3, 2009 (the "Meeting"). Details of the terms of the proposed Asset Sale were disclosed in the information circular in respect of the Meeting and a copy of the purchase and sale agreement has been posted on SEDAR. The proceeds from the Asset Sale are expected to retire the bank line of credit and retire most joint venture obligations assigned to those assets. This will significantly reduce the working capital deficit of Lochaird. At the Meeting shareholders also unanimously approved the election of the Board of Directors, the continuation of Stock Option Plan, and the appointment of Collins Barrow as the Corporation's auditors.
Upon completion of this transaction, the Corporation will focus it efforts to develop its land holdings in the Tilston / Sinclair area of Manitoba and has had preliminary discussions with other producers in this regard. Recent activity in this area includes a horizontal Bakken well drilled and completed 2.5 miles to the north of the Corporation's lands. These lands are prospective for exploration of the Bakken and other deeper targets. Coming up-dip from the original well drilled on the Corporation lands may provide a better response from the Mission Canyon zone that produced oil with significant water levels.
The Corporation also advises that the TSX Venture Exchange (the "Exchange") de-listed the securities of the Corporation effective July 13, 2009 for non-payment of its 2009 annual sustaining fees in accordance with Exchange Policy 2.9. To view a copy of this bulletin, please visit the Exchange website at http://www.tsx.com. Subsequent to the Asset Sale the Corporation may seek to re-list on the Exchange or an alternate market.
The Corporation continues to evaluate all situations that will enhance shareholder value.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information please contact:
Grant S. Blakely
President and Chief Executive Officer
Lochaird Energy Inc.
620, 910 - 7th Avenue S.W.
Calgary, Alberta T2P 3N8
Phone (403) 514-0955
Fax (403) 514-0956
Email: grant@lochaird.com; www.lochaird.com
ADVISORY: This news release contains forward-looking statements or forward-looking information, including the Corporation's expectations and assessment of future plans and operations of the Corporation. These forward-looking statements are based on certain assumptions and analysis made by the Corporation in light of current conditions and expected future developments, as well as other factors it believes appropriate in the circumstances. Actual results may vary from the forward-looking information provided herein. The forward-looking information provided herein is subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict, including risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions of the Corporation prove incorrect or different, actual results may vary materially from those described in the forward-looking information. All forward looking statements speak only as of the date of this news release. The Corporation does not undertake any obligation to publicly update or revise any forward-looking information unless required under applicable securities laws. Accordingly, readers should not place undue reliance on forward-looking information provided herein.
Source: Lochaird Energy Inc. (LEN - TSX-V) www.blakelyg@telusplanet.net
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