CALGARY, ALBERTA — (Marketwire) — 08/15/11 — Shoreline Energy Corp. (“Shoreline” or the “Company”) (TSX: SEQ) announces its financial and operating results for the second quarter of 2011 (“Q2 2011”).
On April 29, 2011 Shoreline successfully acquired a combination of operated and non-operated production, undeveloped land, and production facilities from a senior integrated energy producer for an aggregate purchase price of $28.1million. This acquisition was a strategic starting point for the establishment of production and operations for Shoreline as a Canadian junior crude oil and natural gas exploration and production company.
The production sales and volumes detailed in the Q2 2011 filings only include the months of May and June and do not fully reflect the capabilities of the assets performance for a full fiscal quarter.
Interim Unaudited Consolidated Financial Statements and MD&A
Shoreline–s interim unaudited consolidated financial statements for the six months ended June 30, 2011, together with the notes thereto, and Management–s Discussion and Analysis for the six months ended June 30, 2011, have been posted on our website at and filed under our profile on SEDAR ().
Funds from operations
Shoreline realized funds from operations for May and June of $363,133, reflecting $0.09 per share. Compared to nil funds from operations recorded in Q1 2011.
Production
Shoreline–s total production volumes for May and June averaged 792 boe /d. During this period average daily production was comprised of 3,737 Mcf/d of natural gas, 99 bbls/d of oil and natural gas liquids and 70 boe/d of royalty production.
Capital
After spending $28.1 million to acquire assets, Shoreline had a working capital surplus of $7.2 million, plus an undrawn line of credit of $12 million as at June 30, 2011.
The Company has approved a capital budget of $5.4 million for the remainder of 2011 (excluding asset acquisitions), investing capital into phase one of a multiyear inventory of projects. Beginning in Q3 and continuing through the remainder of 2011 Shoreline will add to light oil production through a combination of low risk development projects (well reactivations, recompletions, and facility optimization), development drilling in existing light oil pools and will perform required wellbore abandonments and reclamation. Shoreline will also invest in the acquisition of additional seismic data designed to decrease risk on existing lands and increase Shoreline–s undeveloped land position.
On July 5th, 2011 Shoreline entered into acquisition agreements to acquire, by way of exempt takeover bids, three non-arm–s length private oil and gas production companies for a total purchase price of $34,578,410 for production and reserves, undeveloped land, seismic and facilities. The purchase price will be paid by the issuance of up to 1,933,331 units at a deemed value of $10/unit. A special meeting to approve the transaction has been set for September 28, 2011.
The three companies to be acquired are of strategic importance to Shoreline–s acquisition and growth plans, by;
Dividend Declared
On August 5, 2011 Shoreline declared its Q3 2011 cash dividend to common shareholders of $0.20 per share for the quarter, payable to shareholders of record date September 30, 2011.
About Shoreline
Shoreline Energy Corp., is an emerging junior oil and gas company based in Calgary Alberta. Shoreline provides shareholders a combination of value growth through development of oil and gas reserves and production with a specific focus in the Peace River Arch of northwest Alberta and pays investors a fixed quarterly cash dividend of $0.20 per share beginning September 30, 2011.
The Company is a publicly traded company on the TSX. Further information is available on SEDAR at .
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements concerning the completion of the Offering, the success of the Offering, timing of the Offering, the use of proceeds of the Offering and the listing of the Common Shares on the TSX. These statements are based on current expectations and assumptions regarding, among other things, general economic and industry conditions and the regulatory approval process. The forward looking statements involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks include, but are not limited to, those listed under the heading “Risk Factors” in the Company–s preliminary prospectus. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The TSX has neither approved nor disapproved of the information contained herein.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
President & Chief Executive Officer
(403) 398-4070
Shoreline Energy Corp.
Mr. Daniel Grisdale
Chief Financial Officer
(403) 398-4080