Calgary, Alberta–(Newsfile Corp. – June 12, 2020) – Cuda Oil and Gas Inc. (TSXV: CUDA) (“Cuda” or the “Company“) announces that it has been granted a management cease trade order (“MCTO“) by its principal regulator, the Autorité des Marchés Financiers (the “AMF“), in connection with the late filing of its annual financial statements for the year ended December 31, 2019 and related management’s discussion and analysis (collectively, the “Annual Financial Statements“).
As previously announced on May 29, 2020, the Company applied to the AMF under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203“) to request that a MCTO, rather than a cease-trade order prohibiting trading in all of the Company’s securities, be imposed in connection with the late filing of its Annual Financial Statements. The MCTO prohibits the executive officers and directors of the Company from engaging in any activity related to trading in securities of the Company until the Company files the Annual Financial Statements and the MCTO is revoked, but does not affect the ability of other investors to trade in the Company’s securities. In the event that the Company fails to file the appropriate default status reports prescribed by NP 12-203, the AMF may, as a result, impose an issuer cease-trade order prohibiting trading in all of the securities of Cuda.
There has not been any change to the expected timeframe for the filing of the Company’s continuous disclosure documents that was indicated in the May 29, 2020 news release and there have not been any material business developments relating to the Company since that date. As previously contemplated, today the Company filed its Statement of Reserves Data and Other Oil and Gas Information under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. Based on an independent reserve report prepared by Ryder Scott, the Company’s total proved reserves as at December 31, 2019 increased by 54% over 2018, to 7,599 MBOE and the Company’s total proved plus probable reserves as at December 31, 2019 increased by 2% over 2018, to 14,782 MBOE. Further information relating to the Company’s reserves is available on SEDAR at www.sedar.com.
Despite delays encountered as a result of the COVID-10 pandemic, the Company’s personnel are working diligently with the Company’s auditors to complete the Annual Financial Statements and the Company continues to expect that it will file the Annual Financial Statements by not later than June 30, 2020. In addition, the Company continues to expect that its interim financial statements for the three months ended March 31, 2020 and related management’s discussion and analysis will be filed on or about July 14, 2020.
The Company confirms that it will satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases so long as it remains in default of filing its Annual Financial Statements.
About Cuda Oil and Gas Inc.
Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.
For further information please contact:
President and Chief Executive Officer
Cuda Oil and Gas Inc.
This news release contains forward-looking information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to the anticipated timeline for the filing of continuous disclosure documents, the impact of the COVID-19 pandemic on the Company’s activities, the MCTO and potential restrictions on trading the Company’s securities and reserves estimates involving the implied assessment that the reserves can be profitably produced. Risk factors that could prevent forward-looking statements from being realized include the nature and scope of public health restrictions, the availability of regulatory exemptions, the availability of key personnel, market conditions, third party and regulatory approvals, ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future oil and gas prices. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Oil and Gas Advisories
“BOEs” may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (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. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value
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