Canadian Company Press Release
BDX 1999-04-13 (provided courtesy of Canadian Corporate News.)
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Big Bear Exploration Has Agreed to Sell Properties
CALGARY, ALBERTA--
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Big Bear Exploration Ltd. announced today that it has agreed to
sell properties currently producing approximately 2.5 mmcf/d of
natural gas and 500 bbls/d of light oil for gross proceeds of
approximately $11 million. The net proceeds of these sales will
be used to reduce bank indebtedness to approximately $8 million.
Big Bear has an additional $13 million of bank debt pursuant to a
Bridge Acquisition Facility, which funds were borrowed and
advanced on a secured basis to its wholly-owned subsidiary Blue
Range Resource Corporation. Big Bear intends to extinguish this
debt upon the successful completion of property sales of Blue
Range.
Big Bear's current production from properties not owned by its
wholly-owned subsidiary Blue Range is approximately 825 boe/d
consisting of 35 percent natural gas and 65 percent light oil.
Big Bear also announced that additional claims have been asserted
against Blue Range which have increased the total claims against
Blue Range to approximately $272,913,000.
Blue Range's estimated outstanding obligations and claims in order
of priority, at present are approximately as follows:
/T/
Facilities Lease Obligations: $ 32,529,000
Debtor in Possession Financing: $ 7,000,000
Secured Indebtedness owing to
Blue Range Bank Syndicate: $109,876,000
Secured Indebtedness owing to
Big Bear Exploration Ltd.: $ 13,046,000
Amount of Unsecured Accounts
Payable: $ 29,462,000
Amount of Unsecured Terminated
Claims for Gas Marketing Contracts: $ 81,000,000
----------
Total Debt $272,913,000
/T/
It should be noted that to date claims in respect of gas marketing
contracts which have been terminated, have been asserted against
Blue Range which in aggregate exceed $81 million. The aggregate
amount of these claims substantially exceed Blue Range's initial
estimate of $49 million and additional claims are still expected
to be asserted. Blue Range is in constant discussions with its
creditors and is using its best efforts to quantify the value of
these unsecured claims. In the event that all the creditor claims
are determined to be valid, it appears that the net proceeds
realizable from the sale of Blue Range's properties will be
insufficient to pay in full, all the claims being asserted
against Blue Range.
Big Bear also announced that Blue Range obtained an order from the
Court of Queen's Bench of Alberta extending the time period for
Blue Range to remain under the protection of the Companies'
Creditors Arrangement Act to June 30, 1999.
Big Bear Exploration Ltd. is a Calgary based oil and gas company
listed on The Toronto Stock Exchange under the symbol "BDX".
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Big Bear Exploration Ltd.
Jeff Tonken
President & Chief Executive Officer
(403) 231-6361
or
Big Bear Exploration Ltd.
Rod Lebbert
Sr. Vice President & Chief Operating Officer
(403) 231-2494
or
Big Bear Exploration Ltd.
James W. Surbey
Sr. Vice President, Corporate Development
(403) 231-6434
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