Gear Energy Ltd. provides clarification on the transfer request

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Calgary, Alberta–(Newsfile Corp. – June 5, 2022) – Gear Energy Ltd. (TSX: GXE) (OTCQX: GENGF) (“Gear” or the “Company”) recently submitted an application to the Alberta Energy Regulator (“AER”) to transfer certain non-core heavy oil assets from Alberta. As information about the app is publicly available, Gear is issuing this press release to provide additional details regarding the app.

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The claim relates to a purchase and sale agreement between Gear and an arm’s length third party pursuant to which Gear agreed to transfer selected non-core Alberta heavy oil assets to that third party. Non-core assets consist of 450 wellbores, 84 facilities and 19 pipelines with total current production of approximately 400 boe/d.

Transfers are currently classified as “Pending” with approximately 60-90 days required for review by the AER. In addition to the required EAR approvals for the transfers, there are a number of other conditions to complete the sale transaction and as such there is a high degree of uncertainty as to whether the transaction will ultimately carried out. If and when the sale transaction closes, Gear will determine if an update or adjustment to its 2022 production or financial guidance is necessary.

Forward-looking information and statements
This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. Use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “target”, “ongoing”, “may”, “will”, “plan”, ” should”, “believe”, “plans”, “intend”, “strategy” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements regarding the following: the terms of the potential sale transaction; the closing conditions of the transaction; the timetable for the review of transfers by the EAR; and approvals required for sales transactions.

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The forward-looking information and statements contained in this press release reflect several important factors, expectations and assumptions of Gear. Gear believes that the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that such factors, expectations and assumptions will prove to be correct.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be relied upon unduly. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements, including, without limitation: the ability to receive EAR approval for transfers; the ability of other terms of the sale transaction to be satisfied on terms acceptable to Gear; the ability of the purchaser to respect its commitments and conditions to conclude the sale transaction; and certain other risks detailed from time to time in Gear’s public filings, including in Gear’s most recent Annual Information Form, available on SEDAR at www.sedar.com.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Gear undertakes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required under applicable laws.

FOR MORE INFORMATION, PLEASE CONTACT:

Ingram Gillmore
President and CEO
403-538-8463

David Hwang
Vice President Finance and Chief Financial Officer
403-538-8437

Email: [email protected]
Website: www.gearenergy.com

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/126548

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