Tallgrass appoints Lexier chair, mulls asset sales 2013-03-05 09:17 ET - News Release Mr. John McAdam reports TALLGRASS ENERGY CORP.CORPORATE UPDATE Tallgrass Energy Corp. has provided the following corporate update. Professional appointments Tallgrass is pleased to announce that Jonathan Lexier, BSc, PEng, MBA, has accepted the role of chairman of the board of directors of the company. The board looks forward to the experienced guidance of Mr. Lexier, an accomplished oil and gas veteran who has served as an independent director since November, 2011. Tallgrass also welcomes Scott Reeves as the new corporate secretary of the company. Mr. Reeves is a partner at Tingle Merrett LLP, a Calgary-based law firm focused on securities, corporate finance and commercial transactions for emerging and growth companies, joint ventures, and partnerships. Mr. Reeves has extensive experience in structured financings, private equity and public offerings, public listings and exchange matters, corporate acquisitions, share and asset acquisitions and dispositions, restructurings, securities regulatory requirements for issuers and dealers, and other related business transactions. He also acts a director and/or corporate secretary for many public and private companies, providing detailed corporate governance and continuous disclosure advice to his clients. Production guidance Tallgrass is meeting its production guidance of 515 barrels of oil equivalent per day (greater than 70 per cent oil and natural gas liquids). Strategy Tallgrass is focused on light oil opportunities in its core area of Niton-Bigoray, west of Edmonton, and is executing a strategy of monetizing non-core assets to finance a drilling program as well as reducing debt. Tallgrass has - Sold an interest in a non-producing, non-core Saskatchewan property for $818,000 on Feb. 28, 2013;
- Engaged Sayer Energy Advisors to conduct a sales process for its non-core east-central Alberta assets which are currently producing in excess of 100 boepd per day (70 per cent oil plus NGL);
- Initiating a formal process to monetize some or all of its non-core, very large Duvernay and Nordegg land positions as described below.
Niton-Bigoray core area Tallgrass now recognizes an inventory of 66 drilling locations and has identified further opportunities to increase this base substantially. This inventory provides the backbone of the company's plan to build to 3,000 boepd in a three-year time frame. Niton Cardium wells licensed Tallgrass has received licences from the Energy Resources Conservation Board to drill two wells at its Niton Cardium project. The wells will be drilled from a single pad as horizontal wells and completed with multistage fracs. Bigoray well licensing Tallgrass has initiated the licensing process on two more horizontal wells at its Bigoray project. One of these wells will target the Cardium formation and the second the Belly River formation. Duvernay land position Tallgrass currently owns rights to 120 sections of Duvernay lands in the East shale basin in west-central Alberta. A recently released industry research report highlighted that initial results from two new horizontal wells in the Duvernay formation "oil window" were very strong. Tallgrass is very encouraged by these results due to their general proximity to the company's large Duvernay land base, also in the oil window. Nordegg land position Tallgrass has high graded its Nordegg land position and will have 100-per-cent interest in 134 net sections going forward. Blackout period ended As of the opening of market on March 7, 2013, a self-imposed blackout period will be ended, allowing management and directors to participate in market purchases. |