The destruction of shareholder value in this Dundee subsidiary company has been epic. From $1.50 per share in 2007 to the current $0.03 offer price. From a multi billion $ bungled Spanish offshore natural gas storage to natural gas under Lake Erie to windmills in Africa of all things. Not sure how much DC.A has ploughed into this but it has been substantial....
Dundee Energy to review LP's strategic options
2017-01-10 20:19 ET - News Release
Shares issued 188,268,994
DEN Close 2017-01-10 C$ 0.035
Mr. Bruce Sherley reports
DUNDEE ENERGY LIMITED ANNOUNCES INITIATION OF STRATEGIC REVIEW PROCESS FOR DUNDEE ENERGY LIMITED PARTNERSHIP
Dundee Energy Ltd.'s board of directors has determined to initiate a process to identify, examine and consider a range of strategic alternatives available with respect to enhancing the value of its investment in Dundee Energy LP (DELP).
Strategic alternatives may include, but are not limited to, a debt restructuring, a sale of all or a material portion of the assets of DELP, either in one transaction or in a series of transactions, the outright sale of DELP, or business combination or other transaction involving DELP and a third party, and/or alternative financing initiatives.
Dundee Energy has engaged Dundee Capital Partners, an unrelated entity, and CW Leigh Cassidy of Whitewater Inc. as its financial advisers to advise the corporation in connection with this comprehensive review and analysis of strategic alternatives in connection with the process.
Dundee Energy has not set a definitive schedule to complete its identification, examination and consideration of strategic alternatives with respect to DELP. Given the nature of the process, the corporation does not intend to provide updates until such time as the board of directors approves a definitive transaction or strategic alternative, or otherwise determines that further disclosure is advisable. Dundee Energy cautions that there are no guarantees that the review of strategic alternatives will result in a transaction, or if a transaction is undertaken, as to its terms or timing. The strategic alternatives review process has not been initiated as a result of receiving any transaction proposal.
As previously disclosed, DELP and its lenders have been in continuing discussions regarding the reduction of DELP's borrowings. As a result of these discussions, the terms of DELP's credit facility have been amended to require that DELP reduce borrowings under its operating facilities to $55.0-million by Jan. 13, 2017. This represents a reduction of approximately $3.0-million in borrowings under DELP's operating facilities as at Dec. 31, 2016.
About Dundee Energy
Dundee Energy is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high-impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario, and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia.