Bucking Horse Energy Inc. Announces Closing of Property Sale, Application to the NEX and Corporate Changes
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VANCOUVER, BRITISH COLUMBIA, Mar 05 (MARKET WIRE) -- Bucking Horse Energy Inc. (TSX:BUC), ("Bucking Horse" or the "Company"), announces the closing of the sale of the Company's developed well-bore interests (the "Assets") in the Pinedale field in Wyoming to an arms-length industry purchaser. The transaction was previously announced in the Company's news releases dated December 13, 2012 and February 20, 2013, and described in the Company's information circular dated January 16, 2013. Shareholder approval for the sale was obtained on February 16, 2013. The Assets sold include 66 oil and gas wells and associated petroleum and natural gas production rights, but they do not include the Company's undeveloped oil and gas reserves and leasehold interests. The purchase price for the Assets was US$61,000,000 which was adjusted down at closing for production revenues received and certain expenses incurred since August 1, 2012 (as provided in the Purchase and Sale Agreement). The net proceeds were used to reduce secured debt obligations of the Company. As a result of the sale, the Company no longer meets the continued listing requirements of the Toronto Stock Exchange (the "TSX"). The Company's board of directors has signed a resolution directing the Company to voluntarily delist from the TSX on or about March 28, 2013 and apply for listing on the NEX board of the TSX Venture Exchange to ensure a trading market for the Company's shares. Corporate Changes Effective February 27, 2013, Mr. Dean Willows resigned as Chief Financial Officer, Secretary and Treasurer of the Company. Mr. Nielsen will act as interim CFO, Secretary and Treasurer until a suitable replacement can be found, in addition to his duties as President and CEO. The Board of Directors thanks Mr. Willows for his contributions as an officer of the Company and wishes him success in his future endeavours. The Company has been informed that Mr. Victor Barcot will resign from the Board coincident with the Company's listing on the NEX. The Company's has no plans to seek a replacement Director at this time. Mr. Nielsen, Mr. Schoen and Mr. Deere will continue on as directors during the next phase of the Company. The Company acknowledges and thanks Mr. Barcot for his valued service to the Company. Secured Creditors The bank financing and first charge security on the Company's Assets has been paid out in full. The second charge security to two debenture holders has been partially paid with the proceeds of the sale transaction and their security interest remains and has been upgraded to be a first charge on the title to the Company's remaining assets consisting of undeveloped oil and gas reserves and leasehold interests in the Pinedale field, Wyoming. In order to secure the discharge of the Assets sold, the Company has agreed with the debenture holders to pay their costs of the sale transaction, continue to pay interest under the outstanding debentures, enter into an agreement by May 1, 2013 as to a plan to repay the unpaid portion of the debentures and commence the process of sale of the Company's remaining undeveloped assets by May 1, 2013, with sale proceeds going to further reduce the amount owed under the debentures. The Company intends to commence fulfilling these obligations to the debenture holders immediately. About Bucking Horse Energy Inc. Bucking Horse is an independent oil and gas company which has historically focused exclusively on its natural gas properties in the Pinedale field, within the Green River Basin of southwestern Wyoming. The common shares of Bucking Horse are currently listed for trading on the Toronto Stock Exchange under the symbol "BUC", but is expected to delist from the Toronto Stock Exchange very shortly. Additional information on Bucking Horse Energy Inc. is available on the SEDAR website at www.sedar.com or on the Company's website at www.BuckingHorseEnergy.com. On behalf of the Board of Directors: Gordon Nielsen, President and CEO Forward-Looking Information: Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include the Company's expectation that it will list on the NEX in coordination with a voluntary delisting from TSX, and that it will fulfill certain obligations to debenture holders. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of NEX listing not being achieved, the Company being unable to comply with its contractual obligations, and other factors, many of which are beyond the control of the Company. The forward-looking statements contained in this news release represent the Company's expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations. Contacts: Bucking Horse Energy Inc. Gordon Nielsen President and CEO 604-331-3398 604-688-4712 (FAX) www.BuckingHorseEnergy.com Copyright 2013, Market Wire, All rights reserved. -0-