TSX Venture Exchange: IKM-V
CALGARY, May 15, 2018 /CNW/ - Ikkuma Resources Corp. ("Ikkuma" or the "Corporation") is pleased to announce the initial stage of its previously disclosed plan to divest non-core infrastructure assets.
Ikkuma has entered into a non-binding letter of intent to sell certain midstream assets for a purchase price of $30 million, subject to customary adjustments, pending execution of a definitive purchase and sale agreement (the "Proposed Disposition"). A purchase and sale agreement is expected to be executed in the next 30 days. KES 7 Capital Inc. is acting as a financial advisor to the Corporation in conjunction with the Proposed Disposition. The Proposed Disposition is subject to receipt of all board and regulatory approvals, including approval by the TSX Venture Exchange.
Proceeds from the Proposed Disposition will be used to reduce debt and to fund the Corporation's $12 million flow-through obligations. The focus of the flow-through program will be on the Corporation's recently acquired Central Alberta foothills assets where the team at Ikkuma has had a significant amount of success.
In addition to the Proposed Disposition, Ikkuma is pleased to announce that it has engaged GMP FirstEnergy to sell non-core production and additional infrastructure assets through a public process. As previously disclosed in the Corporation's April 3, 2018 press release, Ikkuma estimates the replacement value of its infrastructure at approximately $600 million.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified growth-oriented public oil and gas company listed on the TSX Venture Exchange under the symbol "IKM", with holdings in both conventional and unconventional projects in Western Canada. The Company is focused in the Foothills Region of Western Canada with a team that has extensive experience in the area with the unique skills at successfully exploiting a complex and potentially prolific play type. Corporate information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information
This press release contains forward‑looking statements and forward‑looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward‑looking statements or information. In particular the press release contains forward-looking statements and information relating to completion of the Proposed Disposition, including the execution of a definitive purchase and sale agreement; the use of proceeds of the Proposed Disposition, including the expected focus of the Corporation's capital expenditure program for 2018; and additional potential sale of non-core production and infrastructure assets through a public process. Although Ikkuma believes that the expectations and assumptions on which the forward‑looking statements and information are based are reasonable, undue reliance should not be placed on the forward‑looking statements and information because Ikkuma cannot give any assurance that they will prove to be correct. The forward-looking statements and information is based on certain key expectations and assumptions made by management, including expectations and assumptions concerning: the negotiation and execution of a definitive purchase and sale agreement in connection with the Proposed Disposition; the satisfaction of all conditions to the closing of the Proposed Disposition and on the time frames contemplated; the Corporation's ability to fund its flow-through obligations, successful bidding and negotiation of terms in connection with its additional noncore production and infrastructure assets; prevailing and future commodity prices, exchange rate, interest rates, inflation rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserves volumes; anticipated timing and results of capital expenditures in carrying out planned activities; the state of the economy and the exploration and production business; the regulatory framework regarding royalties, taxes and environmental laws; results of operations; performance; business prospectus and opportunities. Since forward‑looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risk. These include but are not limited to the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive. The recovery and reserve estimates contained in this press release are estimates only and there is no guarantee that the estimated reserves will be recovered.
In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this press release are made as of the date hereof and Ikkuma undertakes no obligation to update publicly or revise any forward‑looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
SOURCE Ikkuma Resources Corp.