Waldron Energy Corporation Announces Engagement of Financial Advisor to Undertake Process to Dispose of Assets in Order to Unlock Shareholder Value

CALGARY, ALBERTA--(Marketwired - Dec. 2, 2014) -

Waldron Energy Corporation (TSX:WDN) ("Waldron" or the "Corporation") is pleased to announce that it has engaged Cormark Securities Inc. as its exclusive financial advisor to assist the Corporation in order to pursue the sale of a material portion of the assets of the Corporation, either in one transaction or in a combination of transactions; a merger or other business combination; the outright sale of the Corporation; or some combination thereof. While due consideration will be given to all alternatives, the Board of Directors of the Corporation (the "Board") believes that a sale of one or a combination of assets is most likely to best enhance shareholder value.

Taking into account recent transactions, Waldron's Board has determined that the Corporation's shares trade at a significant discount to the inherent value of the Corporation's high quality oil and liquids rich natural gas properties, which are also characterized by high working interests and high operatorship. The Board believes a large reason for the trading discount is the Corporation's relative debt level. Undertaking a process to dispose of individual assets will widen the market of potential acquirers and may result in more attractive deal metrics. In this scenario, the Board believes that the sum of the parts will exceed the market value of the whole Corporation in an acquisition scenario. Accordingly, the Corporation will work with its financial advisor to prepare pertinent information in order to initiate a formal process where the Corporation will market its entire asset base in an effort to sell a portion or substantially all of its assets.

The Corporation's daily production has averaged approximately 1,650 - 1,700 boe per day during the first seven weeks of the fourth quarter of 2014 and the Corporation estimates current net debt outstanding is approximately $24.5 million. At November 30, 2014, the Corporation had approximately 62.7 million shares outstanding. The current share price represents a significant discount to the Board and management's estimate of the potential value to be realized in a disposition, taking into consideration recent transactions, the estimated cash flow generating capability of the assets and the estimated net asset value.