Velvet Offer for Iron Bridge Resources Expires

  • 87.73% of Iron Bridge common shares tendered
  • Velvet Offer for Iron Bridge Resources expires
  • Velvet sets shareholder meeting to approve final acquisition transaction

CALGARY, Alberta, Oct. 05, 2018 (GLOBE NEWSWIRE) -- Velvet Energy Ltd. ("Velvet") and Iron Bridge Resources Inc. (TSX: IBR) ("Iron Bridge") today announced that Velvet's amended $0.845 per share all cash offer has expired, and that a total of approximately 87.73% of Iron Bridge common shares equating to approximately 143,810,584 common shares have been tendered to the offer.

Since Velvet's initial take up of shares on September 24, 2018, approximately 10.29% of additional Iron Bridge common shares equating to approximately 16,872,875 common shares have been tendered to the offer. Velvet has taken-up and will pay for these shares in accordance with the terms of the offer.

Following this additional take-up of shares, Velvet expects to complete a subsequent acquisition transaction to acquire the remaining Iron Bridge common shares. Iron Bridge previously filed on SEDAR under Iron Bridge's profile at a Notice of Special Meeting of Iron Bridge shareholders to be held in Calgary on November 6, 2018, for the purposes of approving the acquisition and amalgamation of Iron Bridge by Velvet.

About Velvet

Velvet Energy Ltd. is a privately-held, full-cycle exploration and production company. Focused in the liquids-rich gas and light oil window of the Deep Basin of Alberta, the Company executes an organic growth business plan, including early land capture, technical evaluation, exploration and development of internally generated prospects. Headquartered in Calgary, Velvet has current production of approximately 30,000 boe per day, prior to the acquisition of Iron Bridge, and a focused land position consisting of over one million net undeveloped acres spanning from its core liquids-rich Ellerslie development in the greater Edson area to early phase Montney light oil development and delineation at Gold Creek.

Important Notice

Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information can be generally identified by the use of words such as "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions. Specifically, forward-looking information in this news release includes statements respecting the subsequent acquisition transaction, including the timing of any such transaction and the completion thereof, if at all. Forward-looking statements in this news release describe the expectations of Velvet as of the date hereof. These statements are based on assumptions and 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 statements for a variety of reasons. Although Velvet believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon.

For further information:

Ken Woolner
President and Chief Executive Officer
(403) 781-9134

Chris Theal
Chief Financial Officer
(403) 781-9162

Peter Henry
Vice President, Finance
(403) 781-9133