Suite 900, 606 - 4th Street SW | Calgary, Alberta | Canada T2P 1T1 | ph: 1.403.699.7650 | fax: 1.403.699.7651
PRESS RELEASE
DECEMBER 4, 2012
MOSAIC ENERGY PROVIDES CORPORATE UPDATE AND 2013 BUDGET OUTLOOK
Mosaic Energy Ltd. is pleased to announce that it has closed two key transactions which transform the company into a
well-funded intermediate-sized company:
-
On November 2, 2012 Mosaic completed a merger with Quatro Resources Inc., a private company producing
4600 boed with the majority of its production, reserves and future development opportunities located in the
Hoadley Glauconitic play at Gilby.
-
On November 13, 2012 Mosaic completed a $123 million equity financing.
These transactions support Mosaic’s two-pronged strategy that will see the company pursue value growth from: i) the
development of its existing portfolio of high impact oil and liquids rich natural gas plays, and ii) from the addition of
quality growth assets through mergers and acquisitions.
Implementation of Mosaic’s strategy will be driven by the company’s recently expanded management team which is
comprised of Steve Fagan, President and CEO; Peter Sticksl, Senior VP Business Development; Mark Taylor, Senior VP
and COO; Dave Ambedian, Senior VP and CFO; Ben Elgert, VP New Ventures – Engineering and Rick Kunimoto, VP New
Ventures – Exploration. Team expansion also includes the hiring or promotion of several key technical, financial and
land personnel.
Current company highlights include:
·
·
·
Production of 9200 boepd (32% liquids)
High working interest and operatorship in 3 Core Areas: i) Jayar/Lator, ii) West Central Alberta, and iii) Redwater
Substantial near-term growth potential from the horizontal development of:
o liquids-rich natural gas in the Montney in Jayar/Lator, the Glauconite in Gilby and the Bluesky in Edson; and
o light oil from the Viking in Redwater and the Dunvegan in Jayar/Lator.
Mosaic has set its 2013 capital budget at $186mm, 90% of which will be directed to horizontal drilling of its key growth
plays. The program will be funded by forecast 2013 cash flow of $83mm, a currently positive working capital balance
and an undrawn credit line of $115mm (up for review in Q2/13). 2013 will also see the company’s Business
Development group devote significant effort to the pursuit of merger, acquisition and new venture opportunities that
complement Mosaic’s current asset base and growth portfolio.
For further information please contact:
Steve Fagan, President and CEO at 403-699-7664, or
Dave Ambedian, Senior VP and CFO at 403-699-7657, or
visit the company’s website at www.mosaicenergy.ca