Isagro USA to Market Vestaron Corporation's Spear(R)-T Biological Insecticide in Greenhouse Vegetables

MORRISVILLE, NC—(Marketwired – June 15, 2017) – Isagro USA, Inc. (Isagro) has signed an agreement to market Vestaron Corporation's (Vestaron) Spear®–T biological insecticide for use on greenhouse vegetables in the United States.

Under the terms of the agreement, Isagro will immediately begin marketing Spear–T in the USA as an effective and environmentally conscious choice for the control of the greenhouse vegetable industry's toughest pests — thrips, whiteflies and spider mites.

“Building a dynamic portfolio of biological and organic crop protection in addition to plant beneficial nutrient products has been our priority for several years in the United States,” according to John Paul Du Pre, Executive Chairman of Isagro USA.

Spear–T has proven to be highly effective on target pests, and by nature of its design is non–toxic to honeybees, fish, birds, humans and other mammals. Field trials of Spear–T demonstrate results that are equivalent or superior to many conventional control insecticides.

John Paul Du Pre added “Spear–T is a biological insecticide that delivers a novel biocontrol solution in a quality formulation for a high degree of consistency and targeted whitefly, thrips and spider mite control. Spear–T is a perfect fit with the Isagro biosolutions portfolio of crop protection and nutrient products.”

The product's active ingredient utilizes a new mode of action to control insects, making Spear–T an excellent fit in a chemical resistance and/or integrated pest management program. It also has a four–hour re–entry interval (REI) and zero–day post–harvest interval (PHI) to maximize grower flexibility.

“We are pleased to be teaming with Isagro to bring this product to greenhouse, vegetable growers,” said Vestaron CEO/President, John Sorenson. “Isagro impressed us with its biosolutions portfolio and Spear–T fits well with their strategy.”

About Vestaron Corporation
Vestaron is a privately–held biotechnology company that specializes in the development of effective bioinsecticides derived from naturally–occurring peptides. More information at www.vestaron.com.

About Isagro USA
Isagro USA, Inc. is headquartered in Morrisville, NC (Research Triangle Park) and is a wholly owned subsidiary of Isagro S.p.A., based in Milan, Italy. Isagro S.p.A. is a global discoverer, manufacturer, formulator and marketer of crop protection products with a portfolio based on proprietary molecules coming from its own R&D unit. Besides its presence in the U.S. Isagro holds subsidiaries in some key markets and serves customers in approximately 80 countries. For more information, visit www.isagro–usa.com and www.isagro.com.

Spear is a registered trademark of Vestaron Corporation.

Concept Capital Management Files Early Warning Report

VANCOUVER, BC—(Marketwired – June 15, 2017) – Concept Capital Management Ltd. (“Concept”) announces that it acquired for a purchase price of C$999,960, direct ownership of 19,999,200 units (the “Units”) of Skeena Resources Limited (“Skeena”) (TSX VENTURE: SKE), of 650 – 1021 West Hastings St., Vancouver, BC V6E 0C3, at a price of C$0.05 per Unit pursuant to a private placement of Units on June 13, 2017 (the “Private Placement”). Each Unit consists of one common share of Skeena and one warrant (“Warrant”) to purchase an additional common share of Skeena exercisable at a price of C$0.10 per common share for a period of three years from the date of issuance.

Immediately prior to the Private Placement, Concept owned 45,088,500 common shares of Skeena, representing approximately 8.4% of the issued and outstanding common shares on a non‐diluted basis and 3,000,000 Warrants. Immediately following this transaction, Concept, owned 65,087,700 common shares of Skeena, representing 10.1% of the issued and outstanding common shares of Skeena, and 12,999,600 Warrants. Assuming the exercise of the Warrants in full, Concept would own 78,087,300 common shares, which would represent 12.2% of the then issued and outstanding common shares of Skeena, on a partially‐diluted basis.

The shares were acquired by Concept for investment purposes, and depending on various factors including, without limitation, market and other conditions, increase or decrease Concept's beneficial ownership, control or direction over shares or other securities of the Issuer, through market transactions, private agreements, treasury issuances, exercises of convertible securities or otherwise.

Concept has also prepared an early warning reporting in accordance with the requirements of National Instrument 62‐103 – The Early Warning System and Related Take‐Over Bid and Insider Reporting Issues that will appear under Skeena's profile on www.sedar.com and a copy of which may be obtained by contacting Mr. Hogel, President of Concept, at info@ccm‐ag.com.

Niko Reports Results for the Year Ended March 31, 2017

CALGARY, AB—(Marketwired – June 15, 2017) – Niko Resources Ltd. (“Niko” or the “Company”) (TSX: NKO) is pleased to report its operating and financial results for the quarter and year ended March 31, 2017. The operating results are effective June 15, 2017. All amounts are in US dollars unless otherwise indicated and all amounts are reported using International Financial Reporting Standards unless otherwise indicated.

CHIEF EXECUTIVE OFFICER'S MESSAGE TO THE SHAREHOLDERS

The focus of our efforts continues to be to achieve our overarching goal of enhancing value and ultimately monetizing the Company's core assets for the benefit of all its stakeholders. However, general market conditions in the industry coupled with our on–going legal issues relating to our assets in India and Bangladesh provide significant challenges that need to be overcome in order to achieve our goal.

The continued non–payment of amounts due for natural gas and condensate delivered from Block 9 in Bangladesh threatens the ability of the Company to fund its operations over the next several months. In addition, it is the opinion of both the Company and our independent reserves evaluator that reserves associated with Niko's interest in Block 9 can no longer be recognized at this time. If the situation in Bangladesh can be resolved, then reserves for Block 9 could again be recognized.

Faced with this liquidity concern, we continue to pursue resolution of the situation in Bangladesh and actively market our interest in the D6 Block in India. I believe that the recent announcement by the operator of the D6 Block indicating that they will award contracts to progress development of the R–Series deepwater gas fields in the block could help this marketing process and that a sale of our interest in the D6 Block could potentially provide a solution to our liquidity situation and achieve our Company's overarching goal. However, no assurance can be made that these efforts will provide a solution on a timely basis or at all.

While we remain hopeful, we acknowledge that much work has to be done and we are committed to doing our best for the benefit of all stakeholders.

William Hornaday – Chief Executive Officer, Niko Resources Ltd.

LIQUIDITY AND CAPITAL RESOURCES

Non–payments by Petrobangla of Amounts Due
Since June 2016, Bangladesh Oil, Gas and Mineral Corporation (“Petrobangla”) has paid reduced amounts to the operator of the Block 9 PSC for invoiced amounts due for gas and condensate supplied from March 2016 to March 2017 pursuant to the Block 9 gas and condensate sales agreements, with the amounts withheld equal to the 60 percent share in the Block 9 PSC held by Niko Exploration (Block 9) Limited (“Niko Block 9″) and totalling $31.5 million to date. Niko Block 9 has issued notices of dispute and force majeure under the Block 9 PSC and sales agreements to the Government of Bangladesh (“GOB”) and Petrobangla. As the cash flow that was expected to be generated by the Block 9 PSC was targeted to fund the current and projected capital expenditures related to the drilling program in Block 9 in fiscal 2017 as well as other cash requirements of the Company, since late September 2016 Niko Block 9 has not paid cash calls that were due and has been issued default notices by the operator of the Block 9 PSC. Under the terms of the joint operating agreement (“JOA”) between the participating interest holders in the Block 9 PSC, during the continuance of a default, the defaulting party shall not have a right to its share of gas and condensate sales proceeds, which shall vest in and be the property of the non–defaulting parties who have paid to cover the amount in default in order to recover the amounts owed by the defaulting party. In addition, if the defaulting party does not cure a default within sixty days of the default notice, the non–defaulting parties have the option to require the defaulting party to withdraw from the PSC and JOA. To date, the non–defaulting parties have not exercised this option.

Funding of Projected Cash Requirements of the Company
The Company's cash flow has been negatively impacted by the failure of Petrobangla to comply with its legal obligations as outlined above. As a result, the Company's cash balances as at March 31, 2017 and projected revenues from its assets in India are not expected to be sufficient to fund the projected cash requirements of the Company's assets in India and its other cash requirements over the next several months. However, the Company's cash resources, and therefore its ability to fund its operations, could be positively enhanced by various factors, including the following:

  • Receiving payments from Petrobangla of amounts due,
  • Executing sale(s) of the Company's interests in its core assets in India and Bangladesh, or
  • Obtaining financing for planned development projects in the D6 Block.

No assurance can be made that appropriate steps will be taken, or goals accomplished, in a manner or on a timely basis so as to enhance the Company's cash resources sufficiently. The failure to enhance the Company's cash resources on a timely basis will have a material adverse impact on the ability of the Company to fund its operations.

Term Loan and Convertible Notes
In July 2016, the Company executed an amendment (the “Fourth Amendment”) to the terms of the Facilities Agreement with its Term Loan Lenders and executed a supplemental indenture to the Indenture governing its Convertible Notes (the “Indenture Amendment”) (collectively, the “Amendments”). As a result of the Amendments, the Company is not required to make interest payments (including interest previously owing) under the Facilities Agreement or the Indenture during the term of the Amendments, nor make payments under the deferred obligation, other than in connection with waterfall distributions (“Waterfall Distribution”). The Amendments restrict the Company's ability to utilize potential proceeds from sales of assets and settlements of arbitration and / or tax claims, as any proceeds from these types of transactions will be required to be distributed amongst the lenders under the amended Facilities Agreement, the holders of the Convertible Notes (the “Noteholders”) and the Company pursuant to the Waterfall Distribution. The Waterfall Distribution under the Amendments is described in Note 15(b) of the Company's audited consolidated financial statements for the year ended March 31, 2017; and, in respect of amounts to be retained by the Company, is subject to the 2016 Settlement Agreement described under “Diamond Settlement” below.

Diamond Settlement
In October 2016, Niko executed an agreement (the “2016 Settlement Agreement”) with subsidiaries of Diamond Offshore (“Diamond”) relating to the settlement of outstanding claims under drilling contracts and the agreement executed in December 2013 (the “2013 Settlement Agreement”) (including related judgements granted by courts in Texas and Alberta), in compliance with the terms of the Fourth Amendment. The terms of the 2016 Settlement Agreement are described in Note 16(b) of the Company's audited consolidated financial statements for the year ended March 31, 2017.

Claim from the Government of India in Alleged Migration of Natural Gas Dispute
In November 2016, the contractor group of the D6 Block in India received a letter from the Government of India (“GOI”), in which the GOI made a claim of approximately $1.55 billion (Niko share $155 million) against the contractor group in respect of gas said to have migrated from neighboring blocks to the D6 Block. Reliance Industries Limited, the operator of the D6 Block, has invoked the dispute resolution mechanism in the PSC and issued a Notice of Arbitration to the GOI, with the arbitration process currently underway. Niko believes the contractor group is not liable for the amount claimed by the GOI and is working with the contractor group to defend against the claim by invoking the dispute resolution mechanism in the PSC.

Exploration Subsidiaries
The Company's exploration subsidiaries that previously owned interests in PSCs in Trinidad and Indonesia have significant accounts payable and accrued liabilities (including PSC obligations) and unfulfilled exploration work commitments reflected on the Company's balance sheet as at March 31, 2017. In August 2016, three of the Company's indirect subsidiaries received written notice from the Government of the Republic of Trinidad and Tobago (“GORTT”) requesting that unfulfilled exploration work commitments be performed under each of the subsidiaries' respective PSCs within sixty days, failing which the GORTT would terminate the three PSCs and exercise its rights on the parent company guarantees for unfulfilled exploration commitments of $118 million. In May 2017, the Company's indirect subsidiaries received written notices from the GORTT terminating the three PSCs. In the Company's view, the parent guarantees for unfulfilled exploration commitments for the three PSCs have expired.

Contingent Liabilities
The Company and its subsidiaries are subject to various claims from other parties, as described in Note 32 of the Company's audited consolidated financial statements for the year ended March 31, 2017, and are actively defending against these claims. An adverse outcome on one or more of these claims could significantly impact the future cash flows of the Company.

Ability of the Company to Continue as a Going Concern
As a result of the foregoing matters (including the ongoing obligations of the Company and its subsidiaries), there are material uncertainties that may cast significant doubt about the ability of the Company to continue as a going concern.

Complete details of the Company's financial results are contained in its audited consolidated financial statements and Management's Discussion and Analysis for the year ended March 31, 2017 which will be available under the Company's SEDAR profile at www.sedar.com.

ESTIMATED RESERVES and ESTIMATED AFTER–TAX NET PRESENT VALUE OF FUTURE NET REVENUE

India
Estimated Reserves – India
    As at March 31,
Gross(1) (Bcfe)   2017   2016
Proved   232   265
Proved plus Probable   362   406
(1)   'Gross' reserves are defined as those accruing to the Company's working interest share before deduction of royalties and government share of profit petroleum, and are reflected on a gas equivalent basis.
     

Deloitte LLP (“Deloitte”), an independent petroleum engineering firm, has prepared its reserves evaluation for the Company's interest in the D6 Block in India. This evaluation has been prepared in accordance with National Instrument 51–101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook, with an effective date of March 31, 2017.

Deloitte has evaluated the reserves for the Company's interest in the D6 Block in India using its forecast of commodity price inputs into the Indian natural gas pricing formulas under the Guidelines for producing fields and under the New Guidelines for undeveloped discoveries.

 
Estimated After–tax Net Present Value of Future Net Revenue – India (discounted at 10%)
    As at March 31,
(millions of U.S. dollars)   2017   2016
Proved   250   218
Proved plus Probable   486   486
         

Bangladesh
Since June 2016, Petrobangla has withheld all payments for Niko's share of gas and condensate sales from the Block 9 PSC due to legal disputes between Niko and the GOB, Petrobangla and Bapex (refer to discussion on Non–payments by Petrobangla of Amounts Due in the Liquidity and Capital Resources section). In this situation, it is the opinion of both Deloitte and Niko that reserves associated with Niko's interest in Block 9 can no longer be recognized. If the situation in Bangladesh can be resolved such that payments for the Company's share of Block 9 gas and condensate sales resume, then reserves for Block 9 could again be recognized.

Complete details of the Company's reserves and future net revenues attributable thereto are contained in its Annual Information Form for the year ended March 31, 2017, which will be available on the Company's SEDAR profile at www.sedar.com.

OVERALL PERFORMANCE AND RESULTS OF OPERATIONS BY REPORTABLE SEGMENT

The Company's financial results for the year ended March 31, 2017 were impacted by the following significant items:

Execution of the Amendments in July 2016
As a result of the Amendments, the carrying value of the Term Loan, Convertible Notes and deferred obligation and related interest and other payment obligations that had been reflected as current liabilities were derecognized and these obligations were recorded as long–term liabilities at their estimated fair values, resulting in the recognition of a gain on debt modification of $255 million, net of costs. The value of these obligations is primarily dependent on the net proceeds that would be distributed in the future under the Waterfall Distribution mechanism to the respective holders of these debt instruments upon the sale of the assets of the Company and other events, and is therefore highly uncertain. The estimated fair value of the Convertible Notes was determined based on the active trading price of Cdn$11.00 per $100 of Convertible Notes on the date of the Indenture Amendment, the estimated fair value of the Term Loan was determined using the estimated fair value of the Convertible Notes and the corresponding net proceeds that would be payable to the Term Loan lenders under the Waterfall Distribution mechanism, and the estimated fair value of the deferred obligation was determined to be zero based on the priority of payments for the deferred obligation being last under the Waterfall Distribution mechanism after all other claims under the Term Loan have been completely satisfied. In addition, subsequent to the date of the Amendment, the Company has not recognized interest expense on the Term Loan and Convertible Notes.

Diamond Settlement
As a result of the 2016 Settlement Agreement, the carrying value of the contract settlement obligation that had been reflected as a current liability was derecognized and this obligation was recorded as a long–term liability at its estimated fair value, resulting in the recognition of a gain on debt modification of $28 million, net of costs. The value of this obligation is primarily dependent on the net proceeds that would be distributed to Diamond in the future under the Waterfall Distribution mechanism upon the sale of the assets of the Company and other events, and is therefore highly uncertain. The estimated fair value of the contract settlement obligation was determined using the estimated fair value of the Convertible Notes and the corresponding net proceeds that would be payable to Diamond under the Waterfall Distribution mechanism.

Non–payments by Petrobangla of Amounts Due
As a result of the continued non–payments by Petrobangla of amounts due and Niko Block 9's non–payments of cash calls due to the operator and the default mechanism in the Block 9 JOA, the invoices issued by the operator of the Block 9 PSC for gas and condensate sales to Petrobangla for September 2016 to March 2017 reflect the non–defaulting parties' entitlement to the sales proceeds and, as such, the Company did not recognize $19 million of net oil and gas revenues that it otherwise would have been entitled to. In addition, the Company recognized an impairment of $13 million in the second quarter of fiscal 2017 related to the net revenue receivable from Petrobangla for the months of March to August 2016. If the non–defaulting parties to the Block 9 exercise their option to require Niko Block 9 to withdraw from the PSC and JOA and if this results in a loss of Niko Block 9's interest in the PSC and JOA, then a full impairment of the Company's carrying value of the assets and liabilities related to Block 9 could result.

The Company's results for the fourth quarter and year ended March 31, 2017 are as follows:

 
Consolidated
(thousands of US Dollars,   Three months ended March 31,   Year ended March 31,
unless otherwise indicated)   2017   2016   2017   2016
Sales volumes (MMcfe/d)(1)   87   99   88   104
Net oil and natural gas revenue   8,097   20,370   44,385   94,170
EBITDAX from continuing operations(2)   556   11,018   17,575   57,118
Net income (loss) from continuing operations   24,111   77,595   266,567   (55,694)
Net income (loss) from discontinued operations   (23)   (337)   (2,148)   (30,108)
Development capital expenditures   2,947   2,789   30,968   21,679
Net cash flow(3)   (4,783)   (1)   (25,680)   (22,562)
(1)   Includes volumes for September 2016 to March 2017 in Bangladesh for which revenue has not been recognized (see below).
(2)   Refer to “Non–IFRS Measures” for details.
(3)   Net cash flow is the total change in cash and cash equivalents as stated in the Company's statement of changes in cash flow. This additional IFRS measure is used to show the total change in cash and cash equivalents from the Company's operating, investing and financing activities.
     

Highlights for the year ended March 31, 2017 include:

Natural production declines and lower natural gas prices for the D6 Block in India and the non–recognition of net revenue for Block 9 in Bangladesh in fiscal 2017 contributed to lower net oil and gas revenue and lower EBITDAX for the Company for fiscal 2017 compared to fiscal 2016, partially offset by lower production and operating expenses and general and administrative expenses.

Net income from continuing operations of $267 million in fiscal 2017 primarily resulted from recognition of gains on debt modification totalling $283 million resulting from the Amendments and the 2016 Settlement Agreement, and recognition of deferred income tax recovery of $40 million related to an extension in the carry–forward period for unutilized Minimum Alternative Tax (“MAT”) credits in India from ten to fifteen years, partially offset by the negative impact of $32 million of non–payments by Petrobangla of amounts due in Block 9 and finance expense of $26 million. Refer to Note 26 of the audited consolidated financial statements for the year ended March 31, 2017 for details regarding MAT.

Net loss from continuing operations of $(56) million in fiscal 2016 primarily reflected the recognition of unfulfilled exploration commitments of $54 million, finance expense of $77 million and recognition of deferred income tax expense of $40 million, partially offset by net reversal of asset impairments of $121 million primarily related to the D6 Block in India.

Development capital expenditures of $31 million in fiscal 2017 related primarily to development well programs in the D6 Block in India and Block 9 in Bangladesh.

Net cash flow of ($26) million in fiscal 2017 primarily reflected the impact of EBITDAX, payments for development capital expenditures of $17 million, and principal and interest repayments of $11 million on the finance lease related to the floating, production, storage and offloading vessel (“FPSO”) employed in the D6 Block in India.

Highlights for the fourth quarter ended March 31, 2017 include:

Total sales volumes in the fourth quarter of fiscal 2017 of 87 MMcfe/d decreased from 99 MMcfe/d in fiscal 2016 primarily due to the impact of natural production declines in the D6 Block in India and impact of increased delivery pressure requirements of the sales trunkline in Block 9 in Bangladesh, partially offset by incremental production from two sidetrack wells in the D6 Block, of which one well was brought on–stream in January 2017.

Net oil and natural gas revenues of $8 million decreased in the fourth quarter of fiscal 2017 compared to $20 million in the fourth quarter of fiscal 2016 primarily due to lower natural gas sales volumes and prices in India and the non–recognition of $8 million of net oil and gas revenues in Block 9 during the fourth quarter.

EBITDAX in the fourth quarter of fiscal 2017 decreased compared to $11 million in the fourth quarter of fiscal 2016 primarily due to lower net oil and natural gas revenues in India and a result of the non–recognition of net oil and gas revenues in Block 9, offset by lower production and operating expense.

Net income from continuing operations of $24 million in the fourth quarter of fiscal 2017 decreased compared to $78 million in the fourth quarter of fiscal 2016 primarily due to the impact of lower EBITDAX, offset by the recognition of deferred income tax recovery of $40 million in India related to MAT. In the fourth quarter of fiscal 2016, the Company recognized a reversal of asset impairment of $199 million, which was partially offset by the recognition of deferred income tax expense of $40 million.

Net cash flow of $(5) in the fourth quarter of fiscal 2017 increased from the fourth quarter of fiscal 2016 primarily due to payments for development capital expenditures in India.

Results for the year ended March 31, 2017 for each reportable segment are as follows:

 
India
(thousands of US Dollars,   Three months ended March 31,   Year ended March 31,
otherwise indicated)   2017   2016   2017   2016
Sales volumes (MMcfe/d)   29   37   30   41
Net oil and natural gas revenue   8,093   13,667   33,504   67,820
Segment EBITDAX(1)   2,972   7,019   16,669   45,825
Segment income   25,864   159,635   25,447   74,692
Development capital expenditures   2,317   1,154   18,599   16,783
Segment net cash flow(1)   (3,322)   1,210   (13,083)   (2,155)
(1)   Refer to “Non–IFRS Measures” for details.
     

Total sales volumes from the D6 Block in fiscal 2017 of 28 MMcfe/d decreased from 39 MMcfe/d in fiscal 2016 primarily due to the impact of natural production declines in the fields in the block, partially offset by incremental production from sidetracks and reactivations during fiscal 2016 and fiscal 2017. Two sidetrack wells in the MA field brought on–stream in October 2016 and January 2017, respectively, contributed approximately 7 MMcfe/d of production for the fourth quarter of fiscal 2017.

Net oil and natural gas revenues decreased in fiscal 2017 compared to fiscal 2016 primarily due to lower natural gas sales volumes and prices. The notified price for gas sales from the D6 Block was $3.06 / MMbtu GCV for April 1, 2016 to September 30, 2016 and $2.50 / MMbtu for October 1, 2016 to March 31, 2017 (compared to $4.66 / MMbtu for April 1, 2015 to September 30, 2015 and $3.82 / MMbtu for October 1, 2015 to March 31, 2016). The notified price for gas sales from the D6 Block for April 1, 2017 to September 30, 2017 is $2.48 / MMbtu.

Segment EBITDAX of $17 million in fiscal 2017 decreased compared to fiscal 2016 primarily due to lower net oil and natural gas revenues, partially offset by the impact of lower production and operating expenses for the D6 Block.

Segment income of $25 million in fiscal 2017 decreased compared to segment income of $75 million in fiscal 2016 primarily due to lower EBITDAX in fiscal 2017 and a reversal of asset impairment of $119 million in fiscal 2016, partially offset by lower depletion expense in fiscal 2017 and a deferred income tax recovery of $40 million recognized in the fourth quarter of fiscal 2017 versus a deferred income tax expense of $40 million in fiscal 2016. Depletion expense decreased in fiscal 2017 compared to fiscal 2016 due to lower production volumes and a lower depletion rate resulting from a change in the depletion calculation for the common facilities of the D6 Block effective April 1, 2016, whereby the costs of common facilities are depleted using the total proved reserves of the D6 Block instead of being depleted using the total proved reserves of producing fields in prior periods.

Development capital expenditures of $19 million in fiscal 2017 primarily related to the development drilling program in the D6 Block in India. Development capital expenditures are expected to increase in fiscal 2018 due to the planned spending for the development of the R–Series gas fields.

Segment net cash flow of ($13) million in fiscal 2017 primarily reflected the impact of segment EBITDAX, which was more than offset by payments for development capital expenditures of $22 million, and $11 million of principal and interest repayments on the finance lease related to the FPSO employed in the D6 Block.

In the third quarter of fiscal 2017, the Company signed an asset sale and purchase agreement for the sale of its 33.33 percent interest in the Hazira field in India. Closing of the sale transaction is subject to government and other approvals. The Company's share of sales volumes from the Hazira field in fiscal 2017 of 1.3 MMcfe/d was virtually unchanged from fiscal 2016.

 
Bangladesh
(thousands of US Dollars,   Three months ended March 31,   Year ended March 31,
unless otherwise indicated)   2017   2016   2017   2016
Sales volumes (MMcfe/d)(1)   58   61   58   62
Net oil and natural gas revenue     6,703   10,867   26,333
Segment EBITDAX(2)   (1,297)   5,120   4,983   17,300
Segment income (loss)   (2,605)   3,759   (13,497)   10,266
Development capital expenditures   630   1,635   12,369   4,896
Segment net cash flow(2)   (489)   39   (490)   11,241
(1)   Includes volumes for September 2016 to March 2017 for which revenue has not been recognized (see below).
(2)   Refer to “Non–IFRS Measures” for details.
     

Total sales volumes from Block 9 in fiscal 2017 decreased from fiscal 2016, primarily reflecting the impact of increased delivery pressure requirements of the sales trunkline, partially offset by the impact of a development well that was brought on–stream in late January 2017.

Net oil and natural gas revenues in fiscal 2017 decreased from fiscal 2016 due to lower sales volumes and the non–recognition of $19 million of net oil and gas revenues from September 2016 to March 31, 2017 in Block 9 (refer to discussion on Non–payments by Petrobangla of Amounts Due in the Liquidity and Capital Resources section).

Segment EBITDAX of $5 million in fiscal 2017 decreased compared to fiscal 2016 primarily as a result of the non–recognition of net oil and gas revenues, partially offset by lower production and operating expenses.

Segment loss of $(13) million in fiscal 2017 decreased compared to segment income of $10 million in fiscal 2016 primarily as a result of lower segment EBITDAX and the impairment of $13 million of net revenue receivable from Petrobangla, partially offset by lower depletion expense.

Development capital expenditures of $12 million in fiscal 2017 related primarily to costs for the development drilling program in Block 9 in Bangladesh. The drilling of the first of two planned development wells in the Bangora field commenced in September 2016 and this well was brought on–stream in late January 2017. Drilling of the second well is currently under evaluation (refer to discussion on Non–payments by Petrobangla of Amounts Due in the Liquidity and Capital Resources section).

Segment net cash flow in fiscal 2017 primarily reflected the non–payment by Petrobangla of amounts due to the Company and non–payment by the Company of cash calls due to the operator for development capital and operating expenditures in Block 9 (refer to discussion on Non–payments by Petrobangla of Amounts Due in the Liquidity and Capital Resources section).

 
Other
(thousands of US Dollars,   Three months ended March 31,   Year ended March 31,
unless otherwise indicated)   2017   2016   2017   2016
Segment EBITDAX from continuing operations(1)   (1,119)   (1,121)   (4,077)   (6,007)
Segment income (loss) from continuing operations   852   (85,799)   254,617   (140,652)
Segment net cash flow from continuing operations(1)   (966)   (1,205)   (12,088)   (37,855)
Net income (loss) from discontinued operations   (23)   (337)   (2,148)   (30,108)
Net cash flow from discontinued operations(1)   6   (45)   (19)   6,207
(1)   Refer to “Non–IFRS Measures” for details.
     

Segment EBITDAX from continuing operations of $(4) million in fiscal 2017 decreased from $(6) million in fiscal 2017, primarily due to lower general and administrative expenses.

Segment income from continuing operations of $255 million in fiscal 2017 increased from a segment loss of $(141) million in fiscal 2016, primarily due to the recognition of gains on debt modification of $283 million due to the Amendments and 2016 Settlement Agreement in fiscal 2017, recognition of liabilities of $54 million for unfulfilled exploration commitments for a PSC in Trinidad in fiscal 2016 and lower finance expenses due to the Amendments in July 2016.

Segment net cash flow from continued operations of ($12) million in fiscal 2017 decreased from ($38) million in fiscal 2016 primarily due to lower repayment of long–term debt and contract settlement obligations (funded partially from the release of restricted cash accounts) and lower payments for restructuring costs and general and administrative expenses.

Net loss from discontinued operations in fiscal 2017 of $(2) million in fiscal 2017 decreased from $(30) million in fiscal 2016 primarily due to recognition of liabilities of $22 million of unfulfilled exploration commitments for three PSCs in Indonesia in fiscal 2016.

Net cash flow from discontinued operations of $6 million in fiscal 2016 reflected receipt of net cash consideration for the sale of subsidiaries that held interests in five Indonesian PSCs in fiscal 2016.

Forward–Looking Information
Certain statements in this press release constitute forward–looking information. Specifically, this press release contains forward looking information relating to the Company's ability to fund its cash requirements over the next several months, the ability of the Company to successfully complete its strategic plan on a timely basis, the Company not being liable in respect of claims made by the GOI and the successful pursuit of legal rights by the Company related to disputes with the Government of Bangladesh and its subsidiary entities. Such forward–looking information is based on a number of risks, uncertainties and assumptions, which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. There can be no assurances that the Company will be able to successfully complete its strategic plan on a timely basis or that the Company will be able to meet the goals and purposes of its business plan (including resolving various disputes against governments and others in its favour) or fund its operations over the next several months. The failure to meet or satisfy any of the foregoing is likely to have a material adverse impact on the Company and thereby significantly impair the value of security holders' interest in the Company. Undue reliance should not be placed on forward–looking information. Such forward–looking information reflects the Company's current beliefs and assumptions and is based on information currently available to the Company. This forward–looking information is based on certain key expectations and assumptions, many of which are not within the control of the Company and include expectations and assumptions regarding the future actions of the Company's lenders, future actions of the GOI, future actions of the People's Republic of Bangladesh, Petrobangla or Bapex, whether courts in the People's Republic of Bangladesh will recognize the exclusive jurisdiction of the international tribunals constituted under the Rules of the International Centre for Settlement of Investment Disputes, Niko being able to terminate or otherwise overcome a certain stay order in respect of Block 9 PSC, non–defaulting parties not seeking to require a subsidiary of the Company to withdraw from the Block 9 PSC or JOA, future commodity prices, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities, prevailing exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, the availability and cost of labour and services and general market conditions. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such risk factors include, but are not limited to: risks related to the ability of the Company to continue as a going concern, risks related to the Company not being able to increase its cash resources, the risks associated with the Company meeting its obligations under the amended Facilities Agreement and successfully completing its strategic plan, risks related to the various legal claims against the Company or its subsidiaries, risks related to non–payments by Petrobangla of amounts due to subsidiaries of the Company, as well as the risks associated with the oil and natural gas industry in general, such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, government regulation, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources, changes in tax, royalty and environmental legislation, the impact of general economic conditions, imprecision of reserve estimates, the lack of availability of qualified personnel or management, stock market volatility, risks associated with meeting all of the Company's financing obligations and contractual commitments (including work commitments), the risks discussed under “Risk Factors” in the Company's Annual Information Form for the year–ended March 31, 2017 and in the Company's public disclosure documents, and other factors, many of which are beyond the Company's control. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.

The forward looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date of this press release and Niko assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.

Non–IFRS Measures
The selected financial information presented throughout this press release is prepared in accordance with IFRS, except for “EBITDAX”, “Segment EBITDAX” and “Segment Net Cash Flow”. The Company utilizes EBITDAX and Segment EBITDAX to assess performance and to help determine its ability to fund future capital projects and to repay debt. EBITDAX and Segment EBITDAX is calculated as net income before interest expense, income taxes, depletion and depreciation expenses, exploration and evaluation expenses, and other non–cash items (gain or loss on debt modification, gain or loss on asset disposal, gain or loss on derivatives, asset impairment, share–based compensation expense, restructuring expenses, accretion expense, unfulfilled exploration commitment expense and unrealized foreign exchange gain or loss). Segment net cash flow is the total change in cash and cash equivalents for each of the Company's reportable segments (India, Bangladesh and Other). This additional measure is used to show the total net change in cash and cash equivalents from the reportable segment's operating, investing and financing activities. EBITDAX, Segment EBITDAX and Segment Net Cash Flow should not be viewed as a substitute for measures of financial performance presented in accordance with IFRS or as a measure of a company's profitability or liquidity. These non–IFRS measures do not have any standardized meaning prescribed by IFRS and is therefore may not be comparable to similar measures presented by other companies. Refer to the Company's Management's Discussion and Analysis for details on these non–IFRS financial measures.

Pure Multi-Family REIT LP Announces the Closing of a Previously Announced Property in Phoenix, Arizona for US$47.5 Million

VANCOUVER, BC—(Marketwired – June 15, 2017) – Pure Multi–Family REIT LP (“Pure Multi–Family”) (TSX VENTURE: RUF.U) (TSX VENTURE: RUF.UN) (TSX VENTURE: RUF.DB.U) (OTCQX: PMULF) announces the successful closing of the previously announced multi–family apartment community Pinnacle at Union Hills (“Pinnacle”), located in the North Phoenix, Arizona, for a purchase price of US$47.5 million.

Pinnacle is a 264–unit, institutional quality asset, with an average unit–size of 1,019 square feet. Pinnacle is situated in a strong North Phoenix location that borders the future Arizona Biomedical Corridor and the prestigious North Scottsdale submarket. Approximately 77% of the units have been upgraded with an interior renovation package that includes stainless steel appliances, Corian countertops and wood–plank vinyl flooring. Pinnacle features two resort–style swimming pools, a 24–hour fitness centre, a stand–alone leasing office and a Wi–Fi café.

Pure Multi–Family funded the purchase of Pinnacle with proceeds from the recent equity offering, which closed on April 7, 2017. Pure Multi–Family intends to place new first mortgage financing on the Pinnacle in due course.

Stephen Evans, Pure Multi–Family's CEO, stated, “We are excited to add another high–quality stable asset to our portfolio. With this acquisition, we now have three multi–family properties in the Phoenix area, and look to further expand our footprint in this strong and growing market.”

Upon completion of the acquisition of the Pinnacle, Pure Multi–Family's portfolio consists of 19 multi–family properties comprising an aggregate of 6,209 residential units, situated on 328 acres of land.

About Pure Multi–Family REIT LP

Pure Multi–Family is a Canadian based, publically traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi–family real estate assets.

Additional information about Pure Multi–Family is available at www.puremultifamily.com or www.sedar.com.

Forward–Looking Information:

Certain statements contained in this news release may constitute forward–looking statements. Forward–looking statements are often, but not always, identified by the use of words such as “anticipate”, “plan”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. These 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 statements. Forward looking statements in this news release include: (i) “Pure Multi–Family intends to place new first mortgage financing on the Pinnacle in due course”.

The forward–looking statements contained in this news release are based on certain key expectations and assumptions made by Pure Multi–Family, including, but not limited to, its ability to obtain new first mortgage financing on the Pinnacle on acceptable terms. Although Pure Multi–Family believes that the expectations and assumptions on which the forward– looking statements are based are reasonable, undue reliance should not be placed on the forward–looking statements because Pure Multi–Family can give no assurance that they will prove to be correct. 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 to, the failure to obtain mortgage financing on acceptable terms, competitive factors in the industries in which Pure Multi–Family operates, prevailing economic conditions, and other factors, many of which are beyond the control of Pure Multi–Family.

The forward–looking statements contained in this news release represent Pure Multi–Family's expectations as of the date hereof, and are subject to change after such date. Pure Multi–Family disclaims any intention or obligation to update or revise any forward–looking statements whether as a result.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture Exchange) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

Image Available: http://www.marketwire.com/library/MwGo/2017/6/15/11G141270/Images/pinnacle_photo_press_release–c4fecf00d36197968f502877225e5e19.jpg

Polaris Infrastructure Provides Drilling Program Update

TORONTO, ON—(Marketwired – June 15, 2017) – Polaris Infrastructure Inc. (TSX: PIF) (“Polaris Infrastructure” or the “Company”), a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to provide the following update with respect to the 2017 San Jacinto drilling program.

Consistent with the stated objective of maximizing long–term production at the San Jacinto project, the Company's wholly–owned subsidiary, Polaris Energy Nicaragua S.A. (“PENSA”), began drilling a new injection well, SJ 11–2, in late April, 2017. The well was completed in early June 2017, on–time and under budget, after successfully hitting the targeted zone of permeability. Accordingly, we anticipate that SJ 11–2 will accept a significant volume of geothermal fluids for reinjection, further increasing operating flexibility with respect to the long–term management of the San Jacinto reservoir. We anticipate SJ 11–2 being available for service in late July 2017, following completion of routine construction and fabrication activities.

Further, we are pleased to confirm that drilling of SJ 4–2, a new production well, is scheduled to commence on June 18, 2017. The objective with SJ 4–2 is to further increase average production towards the 72 MW (net) level supported by both the purchase price agreement as well as installed turbine capacity at the San Jacinto project. Target completion date for SJ 4–2 is early August, 2017. In addition, Polaris Infrastructure is assessing whether to drill a second production well, after SJ 4–2, and expects to come to a decision in the next few weeks.

“We are pleased to have successfully kicked off further drilling efforts at the San Jacinto project,” said Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. “Execution of the SJ 11–2 drilling program was excellent, achieving our objectives and coming in under budget. Our focus now shifts to drilling the next production well, SJ 4–2, while continuing to assess options for an additional new production well.”

About Polaris Infrastructure

Polaris Infrastructure is a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.

Registria Adds Global Customer Onboarding Options with Photoregister for LINE Messaging App

DENVER, CO—(Marketwired – June 15, 2017) – Registria is providing global brands yet another way to connect and engage with the customers around the world who buy their products. Photoregister for LINE messaging app is now available, giving brands an effective solution for customer onboarding, and allowing customers to engage with brands on the messaging apps they already use every day.

Photoregister for LINE uses natural language processing capabilities and allows for context–aware, free–flowing conversations between consumers and the platform. The solution is built on top of a highly scalable and secure platform that is compliant with industry standards, such as PCI and DSS.

Using Photoregister for LINE, customers can register their product, request service or support, or buy additional products and services in a digital conversation, which is simple and efficient for both the customer and the brand.

Companies that offer Photoregister consistently identify three to five times more of their buyers and generate an additional $15 to $50 in revenue per product registration. Registria already offers Photoregister for Facebook Messenger, which — along with WhatsApp — is the world's most used messaging app.

“Adding LINE to our messaging portfolio for Photoregister gives consumers around the globe additional options for connecting with the brands through the communication method they prefer — messaging apps,” said Chris McDonald, CEO of Registria. “The added benefit of machine learning also helps to make the process simple and effective for brands.”

LINE launched in Japan in 2011, and quickly became the largest social network in the country, with more than 214 million monthly active users. More than four billion people around the world have installed at least one messaging app on their smartphone, and messaging has replaced phone calls as the communication medium of choice for millennials, who are comfortable and fluent with messaging as an interaction method.

Enhancements to Photoregister for LINE will include the addition of a chatbot, as well as e–commerce and support features through the messaging platform. Both will be available by this fall. A version of Photoregister for WeChat, another popular messaging application is in development as well, with an expected release later in 2017.

About Registria
Registria is an award–winning software–as–a–service company that enables the world's leading product brands to deliver a powerful post–purchase customer journey for their buyers. Purpose built for manufacturers, Registria integrates technology with digital marketing to connect a brand's sales, marketing and service capabilities to successfully onboard new buyers and guide them throughout their ownership experience.

Photoregister(SM), Registria's mobile registration solution, provides the fastest way for consumers to register new product purchases via text, email, web, or social messaging. Photoregister is offered on more than 70 percent of all major appliances in the U.S., becoming the standard for that industry. Over 30 million U.S. households have registered products using Registria solutions.

Condor Begins Drilling the Yakamoz 1 Exploration Well

CALGARY, AB—(Marketwired – June 15, 2017) – Condor Petroleum Inc. (“Condor” or the “Company”) (TSX: CPI), a Canadian based oil and gas company focused on exploration and production activities in Turkey and Kazakhstan, provides an operations update.

Drilling has commenced on the Yakamoz 1 exploration well which is located 2 km north of the Company's 100% owned and operated Poyraz Ridge gas field in Turkey. Based on existing seismic data and well results from Poyraz Ridge, the Yakamoz prospect could be more highly fractured and gas rich than the reservoirs encountered at Poyraz Ridge. The well is expected to reach its planned total depth of 2000 meters in early Q3 2017.

Poyraz Ridge development remains on track to begin gas production in Q3 2017. Construction of the Central Processing Facility is 85% complete and commissioning activities are planned to commence in early Q3 2017. Construction of the 6″ gas sales line is ongoing, with surface right–of–way access rights continuing in parallel with pipeline construction.

The Poyraz West 4 development well was drilled to 2164 meters with the horizontal leg commencing at 1714 meters and penetrating the upper Gazhanedere sandstone interval. The high wellbore placement, in conjunction with the inherently lower drawdown pressures associated with a horizontal well, is expected to mitigate any paraffin production as experienced on some of the other Poyraz Ridge wells although no paraffin issues have been encountered on prior tests of this upper Gazhanedere interval. The Poyraz West 4 well is expected to have higher deliverability than prior vertical wells and will be completed and tied into the processing facilities once the Yakamoz 1 well has been evaluated.

Paraffin mitigating equipment was installed at the Poyraz 3 well and successfully prevented blockage in the tubing string although sustained commercial gas flow rates from this well were not realized. Next steps are being reviewed, although this well was only expected to contribute 300 mscf/day and has a negligible impact on the overall field production rates.

Advisory on Forward–Looking Statements

All statements other than statements of historical fact may be forward–looking statements. Such statements are generally identifiable by the terminology used, such as “seek”, “appear”, “anticipate”, “believe'', “intend”, “expect”, “plan”, “estimate”, “continue”, “project”, “predict”, “budget”, “outlook”, “may”, “will”, “should”, “could”, “would” or other similar wording. Forward–looking statements in this news release include, but are not limited to information concerning: the timing and ability to conduct exploration, development and production operations; the ability to integrate drilling results and seismic interpretation to characterize exploration prospects including the potential for Yakamoz 1 well to be more highly fractured and gas rich than at Poyraz Ridge; the expectations, timing and costs of exploration, appraisal and development activities; the ability of the drilled wells to become future gas producing wells; the timing and ability to develop the gas reserves, construct the required infrastructure and to commence producing and selling gas; the timing and ability to obtain various approvals for the Company's exploration and development activities including the remaining surface right–of–way access rights for the Poyraz Ridge pipeline; the timing and ability of the horizontal well to have inherently lower drawdown pressures and to achieve higher deliverability than vertical wells; the timing and ability to apply wax production treatment measures; the timing and ability to mitigate any paraffin production; the timing and ability to access oil and gas pipelines and oil and gas domestic and export sales markets; and historical production and testing rates may not be indicative of future production rates, capabilities or ultimate recovery.

Forward–looking statements involve the use of certain assumptions that may not materialize or that may not be accurate and are subject to known and unknown risks and uncertainties and other factors, which may cause actual results or events to differ materially from those expressed or implied by such information. Condor's operations are also subject to certain other risks and uncertainties inherent with oil and gas operations and additional information on these and other factors that could affect Condor's operations and financial results. These factors are discussed in greater detail under Risk Factors – Risks Relating to the Company in Condor's Annual Information Form, which may be accessed through the SEDAR website (www.sedar.com). The Company believes that the expectations reflected in these forward–looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward–looking statements should not be unduly relied upon. The Company does not undertake any obligation to update or to revise any of the forward looking information, except as required by applicable law.

Abbreviations 
  
The following is a summary of abbreviations used in this news release: 
  
km kilometer 
% percent 
Q quarter 
inch 
mscf/day thousand standard cubic feet per day 

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Optex Systems CEO/CFO Invest $314,000 into OPXS

RICHARDSON, TX—(Marketwired – June 15, 2017) – Optex Systems Holdings, Inc. (OTCQB: OPXS) (OTCQB: OPXXW), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced today that through a series of transactions with Sileas and the Longview Fund, the CEO and CFO purchased a significant share of the company. Subsequent to the investment, the combined ownership of the CEO and CFO is 11.4% of the Optex Systems Holdings issued and outstanding shares.

Danny Schoening, Optex Chairman and CEO, stated, “This transaction successfully settled the Sileas debt to Longview while simultaneously establishing a fair and equitable division of Optex shares between Longview, Karen Hawkins, Optex's CFO, and myself.” He continued, “Our investment in Optex clearly denotes our confidence in the Company as well as our commitment to the shareholders, customers, and the employees of Optex.”

ABOUT OPTEX SYSTEMS

Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2008 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.

Safe Harbor Statement

This press release contains certain forward–looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” and similar expressions. These forward–looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed–price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.

You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward–looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward–looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward–looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10–K, 10–Q and 8–K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.