PRD Energy Announces Results of Shareholder Meeting and Stock Exchange Delisting

CALGARY, ALBERTA--(Marketwired - Aug. 26, 2016) - PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announced that shareholders today approved the voluntary liquidation and dissolution of the Company, the distributions to PRD shareholders of cash on hand, as part of such liquidation and dissolution, by way of a reduction of the stated capital of the PRD common shares and the delisting of the PRD common shares from the TSX Venture Exchange.

Following the meeting, the Company applied to delist the PRD Shares from the TSX Venture Exchange, which delisting is expected to occur at the close of trading on or about September 1, 2016.

Also, the Company filed a notice of intent to dissolve with Alberta Corporate Registry and a Certificate of Intent to Dissolve was issued by Alberta Corporate Registry on August 26, 2016. The certificate of intent to dissolve requires PRD to cease to carry on business except to the extent necessary for its liquidation.

As previously announced, it is expected that PRD shareholders will receive the net proceeds of the liquidation in two installments. The first distribution, representing the majority of the Company's cash, is anticipated to be made as soon as practical following the delisting of the PRD common shares from the TSX Venture Exchange and approval of the board of directors of PRD. The second distribution is expected to be made following the discharge of the Company's remaining liabilities, receipt of a clearance certificate from the Canada Revenue Agency and approval of the PRD board or directors.

The amount of the installments will be determined by the board of directors of PRD after repaying the Company's obligations and reviewing potential tax and other liabilities of PRD and its subsidiaries, including the costs of winding up the business and affairs of PRD and its subsidiaries. The Board is not currently aware of any material items that could give rise to unforeseen tax liabilities or other liabilities or costs which would materially reduce the amount of the cash available for distribution to PRD shareholders, but there is no assurance this will remain the case.