Feb 24, 2011
Declares First Quarter 2011 Dividend
/NOT FOR DISSEMINATION IN THE U.S./
CALGARY, Feb. 24 /CNW/ – (TSX: PRQ) – Progress Energy Resources Corp.
(“Progress” or the “Company”) today filed its audited Consolidated
Financial Statements and Notes to the Consolidated Financial Statements
and Management’s Discussion and Analysis for the year ended December
31, 2010 on SEDAR. These may be viewed at www.sedar.com and on the Corporation’s website at www.progressenergy.com.
On February 14, 2011, Progress announced that it was expanding its 2011
capital program to $350 million. Progress expects the expanded capital
program to result in production growth to an average of approximately
45,000 to 46,000 barrels of oil equivalent (“boe”) per day in 2011 and
2011 exit production of 50,000 to 52,000 boe per day, an increase of
approximately 15 percent from 2010 exit production of approximately
45,000 boe per day.
On February 9, 2011, Progress announced that its reserve base had grown
by 30 percent on a debt-adjusted, per-share basis in 2010, primarily
driven by the success of the Company’s Montney drilling program in
northeast British Columbia. With an expanded capital program of $350
million for 2011, the Company intends to accelerate the number of
Montney wells to be drilled in 2011 to approximately 30 to 35
horizontal wells.
In connection with the expansion of the Company’s capital program,
Progress announced that it had entered into an agreement with a
syndicate of underwriters pursuant to which the underwriters have
agreed to purchase, on a bought deal basis, 14,400,000 common shares of
Progress (“Common Shares”) at a price of $13.90 per Common Share for
gross proceeds of $200,160,000 and $200,000,000 principal amount of
Convertible Unsecured Subordinated Debentures for total combined gross
proceeds of $400,160,000 (collectively the “Offering”). The Offering is
expected to close on or about March 7, 2011 and is subject to Progress
receiving all necessary regulatory approvals, including the approval of
the Toronto Stock Exchange (the “TSX”). Canada Pension Plan Investment
Board (“CPPIB”) which currently owns 14.7 percent of the Company’s
outstanding Common Shares has agreed to subscribe for 2,116,800 Common
Shares under the Offering at $13.90 per Common Share in order to
maintain its current ownership interest. No fee or other commission
will be paid to the underwriters for the Common Shares purchased by
CPPIB under the Offering.
This news release is not an offer of the securities for sale in the
United States. The securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an exemption from
registration. This news release shall not constitute an offer to sell
or the solicitation of an offer to buy nor shall there be any sale of
the securities in any State in which such offer, solicitation or sale
would be unlawful.
Dividend Declared
The Board of Directors of Progress Energy Resources Corp., (“Progress”
or the “Company”) today announced that the first quarter 2011 dividend
will be maintained at $0.10 per share. The dividend will be payable on
April 15, 2011 to holders of Common Shares of record as of March 31,
2011. The ex-dividend date is expected to be March 29, 2011. Based on
the February 24, 2011 closing share price on the Toronto Stock Exchange
of $12.91, this represents an annualized yield of 3.1 percent. The
amount of future cash dividends, if any, is subject to the discretion
of the Progress Board of Directors.
Progress has a dividend reinvestment program (“DRIP”) which allows
shareholders who elect to participate in the DRIP to direct that their
cash dividends be reinvested in additional Common Shares which, when
issued from treasury, will be issued at 95 percent of the Average
Market Price (as defined in the DRIP) on the applicable dividend
payment date.
A complete copy of the DRIP is available by following the “Shareholder
Information – DRIP link” on the “Investors” page of Progress’ website
at www.progressenergy.com or from Computershare by calling 1-800-564-6253. Shareholders should
carefully read the complete text of the DRIP before making any
decisions regarding their participation in the DRIP.
Annual Meeting of Shareholders
Progress’ Annual Meeting of Shareholders is scheduled for Wednesday, May
11, 2011 at 3:30 p.m., Calgary time, at the Calgary Petroleum Club,
319-5th Avenue S.W. Calgary, Alberta.
Progress is a Calgary based, mid-size energy company primarily focused
on natural gas exploration, development and production in northwest
Alberta and northeast British Columbia. Common shares of Progress are
listed on the Toronto Stock Exchange under the symbol PRQ.
Advisory Regarding Forward-Looking Statements
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 information or statements. More particularly
and without limitation, this press release contains forward-looking
statements and information concerning the timing of completion of the
Offerings; the use of the proceeds of the Offering including the
expanded 2011 capital program, the acceleration of its Montney drilling
program; and the Company’s expected 2011 average exit production rate.
The forward-looking statements and information are based on certain key
expectations and assumptions made by Progress, including expectations
and assumptions concerning prevailing commodity prices and exchange
rates, applicable royalty rates and tax laws; future well production
rates; reserve and resource volumes; the performance of existing wells;
the success obtained in drilling new wells; the sufficiency of budgeted
capital expenditures in carrying out planned activities; the
availability and cost of labour and service; the satisfaction of the
conditions of closing of the Offering; completion of the Offering on
the timing planned; and the receipt of applicable approvals. Although
Progress believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable,
undue reliance should not be placed on the forward looking statements
and information because Progress can give no assurance that they will
prove to be correct.
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 risks. These
include, but are not limited to, the risks associated with the oil and
gas industry in general such as 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 and resource estimates; the uncertainty of
estimates and projections relating to reserves, resources, production,
costs and expenses; health, safety and environmental risks; commodity
price and exchange rate fluctuations; marketing and transportation;
loss of markets; environmental risks; competition; incorrect assessment
of the value of acquisitions; failure to realize the anticipated
benefits of acquisitions; ability to access sufficient capital from
internal and external sources; changes in legislation, including but
not limited to tax laws, royalties and environmental regulations;
failure to satisfy conditions to closing of the Offering; failure to
obtain the necessary regulatory and other approvals, including stock
exchange approvals and on the timelines planned; risks that conditions
to closing of the Offering are not satisfied; and risk that the board
of directors determines that it would be in the best interests of
Progress to deploy the proceeds from the Offering to some other
purpose.
Management has included the above summary of assumptions and risks
related to forward-looking information provided in this press release
in order to provide securityholders with a more complete perspective on
the Company’s future operations and such information may not be
appropriate for other purposes. The Company’s actual results,
performance or achievement could differ materially from those expressed
in, or implied by, the forward-looking information and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them
do so, what benefits that the Company will derive there from.
Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this press
release.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on these and other factors that
could affect the operations or financial results of Progress are
included in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this
press release are made as of the date hereof and Progress 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.
Oil and Gas Terms
The Company has adopted the standard of 6 mcf:1 boe when converting
natural gas to boes. Boe’s may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf:1 bbbl is based on an
energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.