CUSIP# 678046 10 3
NYSE Amex: BQI
N E W S R E L E A S EDATE: February 3, 2012
Oilsands Quest Secures CDN$3.75 million Financing; Agrees to Sell Non-Core Eagles Nest Asset for CDN$4.4 million
CALGARY, ALBERTA - Oilsands Quest Inc. (NYSE Amex: BQI)
("Oilsands Quest," or "the Company") has secured a commitment
for debtor-in-possession ("DIP") financing of
CDN$3.75 million (the "DIP Facility"), for the
purposes of funding operating costs and other expenses while
the Company proceeds with its previously-announced
solicitation process while under creditor protection.
The DIP Facility is being provided by Century Services Inc.
(the "DIP Lender") pursuant to the terms and
conditions of a Commitment Letter dated February 1, 2012. The
DIP Facility will be repayable on the earlier of one year
following closing or the termination of the Order from the
Alberta Court of Queen's Bench (the "Court") providing
creditor protection under the Companies' Creditors
Arrangement Act (Canada) ("CCAA"). The DIP Facility
is subject to the completion of definitive agreements and
Court approval, which the company expects to obtain by
February 16, 2012, after which advances under the DIP
Facility will be available to Oilsands Quest.
Oilsands Quest has also entered into a purchase and sale
agreement with an unrelated third-party entity to sell its
non-core Eagles Nest asset for CDN$4.4 million. The purchaser
has agreed to pay deposits of CDN$300,000 by February 21,
2012 with closing anticipated on or before March 23, 2012.
The asset sale is also conditional on Court approval and
normal closing conditions and adjustments. There can
therefore be no assurance that the sale will be
concluded.
The Eagles Nest prospect covers 22,773 acres (9,216 hectares)
located in the Athabasca oil sands region northwest of Fort
McMurray, Alberta. The property is geographically distant
from Oilsands Quest's other oil sands discoveries and largely
unexplored. Resource estimates for the property are available
on the Company's website.
TD Securities Inc. acted as financial advisor to Oilsands
Quest on the sale of Eagles Nest and, as previously
disclosed, continues to assist the Company with the ongoing
solicitation process.
Oilsands Quest continues to operate under the protection of
CCAA with the assistance of a Court- appointed monitor. The
Company's common shares remain suspended from trading until
either a delisting occurs or until the NYSE permits the
resumption of trading.
Oilsands Quest Inc. (www.oilsandsquest.com) is exploring and developing oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands discovery. It is leading the establishment of the province of Saskatchewan's emerging oil sands industry.
For more information:
Investor Relations
Email: ir@oilsandsquest.com
Investor Line: 1-877-718-8941
CUSIP# 678046 10 3
NYSE Amex: BQI
Forward-looking statements:
This news release includes certain statements that may be
deemed to be "forward-looking statements," including the
expected date for obtaining court approval of the DIP
Facility and the expected date for closing the sale of the
Eagles Nest asset. All statements, other than statements of
historical facts, included in this news release that address
activities, events or developments that management expects,
believes or anticipates will or may occur in the future are
forward-looking statements.
Forward-looking statements are statements other than relating
to historical fact and are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "potential", "prospective" and
other similar words or statements that certain events or
conditions "may" "will" or "could" occur. Forward-looking
statements are based on the opinions and estimates of
management at the date the statements are made, and are
subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, which include but are not limited to the ability
to raise additional capital,
risks associated with the Company's ability to implement its
business plan, its ability to successfully complete the
previously announced solicitation process while under
creditor protection, its ability to submit a timely plan to
its stakeholders and the court under the CCAA and to resolve
its operational, legal and financial difficulties, the
possible delisting of its securities from NYSE Amex, risks
inherent in the oil sands industry, regulatory and economic
risks, land tenure risks and those factors listed under the
caption "Risk Factors" in the Company's Form 10-Q filed with
the Securities and Exchange Commission on December 9, 2011.
The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change, except as required by
law. The reader is cautioned not to place undue reliance on
forward-looking statements.
distribué par | Ce noodl a été diffusé par Oilsands Quest Inc et initialement mise en ligne sur le site http://www.oilsandsquest.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-02-03 14:11:45 PM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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