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DEI

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Share Name Share Symbol Market Type
TSXV:DEI TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Donnybrook Provides Corporate Update

12/08/2013 11:00am

Marketwired Canada


Donnybrook Energy Inc. ("Donnybrook" or the "Company") (TSX VENTURE:DEI) reports
that it is proposing to consolidate its common shares and change the name of the
Company.  Additional information relating to the proposed share consolidation
and name change is included in Donnybrook's information circular dated August 8,
2013 (the "Information Circular"), which is available on SEDAR at www.sedar.com.


Donnybrook has mailed the Information Circular with respect to its annual and
special meeting of shareholders of the Company ("Shareholders") scheduled for
September 6, 2013 (the "Meeting"). As part of that Meeting, Shareholders will be
asked to consider and approve a special resolution to consolidate the issued and
outstanding common shares of the Company ("Common Shares") on the basis of one
(1) post-consolidation Common Share for up to every forty-three (43)
pre-consolidation Common Shares, or such lesser ratio that the board of
directors of the Company (the "Board"), in its sole discretion, may determine to
be appropriate (the "Consolidation"). In addition, Shareholders will be asked to
consider and approve a special resolution to change the name of the Company to
Deca Exploration Inc. or such other name as the Board may determine to approve
(the "Name Change").


There are currently 195,436,066 Common Shares issued and outstanding. Assuming a
consolidation ratio of 43 pre-Consolidation Common Shares for each
post-Consolidation Common Share, the Consolidation would result in there being
approximately 4,545,024 Common Shares issued and outstanding.


The Board considers that the Consolidation would be in the best interests of the
Shareholders as it could lead to increased interest by a wider audience of
potential investors and would better position the Company to obtain financing
and pursue acquisition opportunities. 


To be effective, each of the Consolidation and Name Change must be approved by
at least two-thirds of the Shareholders present or represented by proxy at the
Meeting. In addition, each of the Consolidation and Name Change are also subject
to approval by the TSX Venture Exchange. If approved by the Shareholders, the
Board may determine not to proceed with the Consolidation and/or Name Change, in
its sole discretion. 


Additionally, at the Meeting, Shareholders will be asked to consider and approve
an ordinary resolution confirming an amendment to the Company's by-laws relating
to the advance notice for the nomination of directors (the "By-Law Amendment").
The Board has approved the By-Law Amendment, subject to approval by the
Shareholders at the Meeting. The By-Law Amendment will not be in force prior to
the Meeting being held.


Donnybrook will continue to consider strategic alternatives and the maximization
of shareholder value and which alternatives may include further acquisitions or
dispositions of assets, recapitalization or mergers with other companies. Except
as required by law, Donnybrook does not intend to disclose developments with
respect to strategic alternatives until the board of directors of the Company
has approved a definitive transaction or strategic alternative. The Company
cautions that there are no guarantees that a transaction will be undertaken or a
strategic alternative pursued.


Donnybrook has a net cash position of approximately $3 million, is debt free and
is currently producing approximately 275 net boe per day from its properties
located at Bigstone and Fir, Alberta.


Further information relating to Donnybrook is also available on its website at
www.donnybrookenergy.ca.


ON BEHALF OF THE BOARD OF DONNYBROOK ENERGY INC.

Malcolm F. W. Todd, Chief Executive Officer

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements or information
("forward-looking statements") within the meaning of applicable securities laws.
The use of any of the words "will", "expects", "believe", "plans", "potential"
and similar expressions are intended to identify forward-looking statements.
More particularly and without limitation, this press release contains
forward-looking statements concerning the proposed Consolation, including the
proposed consolidation ratio, increased interest of potential investors, the
Consolidation's facilitation of future financings and acquisition opportunities,
the proposed Name Change, the By-Law Amendment.


The forward-looking statements in this press release are based on certain key
expectations and assumptions made by Donnybrook, including the receipt of all
necessary approvals, including but not limited to shareholder and regulatory
approvals including the approval of the TSX Venture Exchange. There is no
assurance that these expectations and assumptions will be met or satisfied and
there is therefore no assurance that the Consolidation and/or Name Change will
be completed or that the By-Law Amendment will become effective.


Since forward-looking statements 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 the risks relating to the failure
to obtain necessary shareholder or regulatory approvals required in order to
proceed with the Consolidation, Name Change and By-Law Amendment and uncertainty
regarding increased interest of potential investors and future financing and
acquisition opportunities. Additional information on these and other factors
that could affect the operations or financial results of Donnybrook are included
in Donnybrook's Annual Information Form, management's discussion and analysis
and other documents filed with applicable securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com). The forward-looking
statements contained in this press release are made as of the date hereof and
Donnybrook undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws. The
forward-looking statements contained in this press release are expressly
qualified by this cautionary statement. 


Where amounts are expressed on a barrel of oil equivalent ("boe") basis, natural
gas volumes have been converted to oil equivalence at six thousand cubic feet
per barrel. The term boe may be misleading, particularly if used in isolation. A
boe conversion ratio of six thousand cubic feet per barrel is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Given that the value ratio
based on the current price of crude oil as compared to natural gas 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Donnybrook Energy Inc.
Malcolm F. W. Todd
Chief Executive Officer
(604) 684-2356
(604) 684-4265 (FAX)
www.donnybrookenergy.ca

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