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Argosy Energy Inc. Announces Amendments to Its Credit Facility and Provides Results of Its December 31, 2012 Reserve Evaluation

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© Marketwire 2013
2013-02-26 23:26:27 -

CALGARY, ALBERTA -- (Marketwire) -- 02/26/13 -- Argosy Energy Inc. ("Argosy" or the "Company") (TSX:GSY) announces that it has signed an amendment to its existing credit facility ("Credit Facility") whereby the Company's lender has agreed to extend the revolving period of the Credit Facility to April 30, 2013 subject to certain term and conditions including the following:

--  Elimination of the acquisition/development line of $4,000,000 (undrawn).
--  Requirement to monetize the existing gas hedge. 
--  Requirement to engage Sayer Energy Advisors as the Company's sales and
    marketing agent to pursue a sale of all of its property and assets. 
--  Requirement that all of the proceeds from any sale of or disposition of
    any of the Company's petroleum and natural gas assets whether under and
    pursuant to the Sayer sales process or otherwise, shall be used to
    permanently repay amounts owed to the lender. 
--  Closing of a transaction of purchase and sale on or before April 30,
--  Repayment in full of all indebtedness to the lender on or before April
    30, 2013. 
--  Amendment fees and monthly extension fees payable to the lender. 

The Company continues to be in breach of the working capital provision of its Credit Facility as it was at June 30 and September 30, 2012. Current outstanding amounts under the operating facility are approximately $22 million. Argosy continues to work with the lender to provide an optimal solution for all parties. The Company can give no assurance that the Credit Facility will be repaid from the proceeds of sale or any of the strategic alternatives that it is pursuing.

Argosy Energy Inc. has been provided the results of its independent reserve evaluation prepared by GLJ Petroleum Consultants (GLJ) as at December 31, 2012. The reserve evaluation is compliant with National Instrument 51-101 and forecast prices used in the evaluation are based on GLJ's January 2013 price forecast.

All future net revenues are stated prior to provision for interest, general and administrative expenses and after deduction of royalties and estimated future capital expenditures. Future net revenues have been presented on a before tax basis. Estimated values of future net revenue disclosed herein do not represent fair market value.

It should not be assumed that the present worth of estimated future cash flow presented in the tables below represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of Argosy's crude oil and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas reserves may be greater than or less than the estimates provided herein.

Additional information with respect to the Company's reserves will be included in the Company's Annual Information Form which is expected to be filed on SEDAR.


Argosy "Gross" reserves include operated and non-operated reserves before deductions of royalties and excluding royalty interests.

(Note values represented in the following tables may not add due to rounding)

                  Total Crude Oil  Nat. Gas Liquids  Natural Gas  Total Boe 
Gross Reserves              (Mbbl)            (Mbbl)       (MMcf)     (Mboe)
Proven Producing               61                71        3,960        792 
Total Proved                  159                76        4,235        941 
Probable                    1,993                81        3,935      2,730 
Total Proved                                                                
 +Probable                  2,152               158        8,170      3,671 

Argosy "Net" reserves include operated and non-operated reserves after royalty deductions and include royalty interests.



Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada. The Company presently has approximately 420 boe/d of primarily natural gas production and has a 100% working interest in a 34 section land position which includes a well developed portion of the Alberta Bakken prospect trend. At September 30, 2012 the Company had combined tax pools totaling approximately $61 million.

Advisory Regarding Forward-Looking Information

This press release contains forward-looking information concerning including but not limited to the Company's banking arrangements. Although Argosy believes that the expectations reflected in the forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other factors that are beyond the control of the Company, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form as well as other filings of the Company with Canadian securities regulators, which filings are available under the Corporation's profile at


Argosy Energy Inc.

Mr. Peter Salamon

President and CEO

(403) 269-8846

Argosy Energy Inc.

500, 1414 - 8th Street S.W.

Calgary, Alberta : .. width="1" height="1" alt=" " border="0" />

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