Realm Energy International Corporation, Vancouver, (TSX: RLM) has reported its intention to explore strategic alternatives regarding its interests in Poland.
Initiation of Strategic Review
After a thorough review of the company's current share price, natural gas resource, and operations, the board of directors has concluded that Realm Energy trades at a substantial discount to the inherent value of its underlying assets. Accordingly, the board has decided to initiate a process to identify, examine and consider a range of strategic alternatives available to the company in connection with its interests in Poland with a view to enhancing shareholder value. The ultimate objective of carrying out this review is to determine which alternative with respect to its interests in Poland might result in superior value for shareholders of the company.
The process will be overseen by a special committee which consists of the independent directors of the board. This special committee has a mandate to solicit, review and consider strategic alternatives with regards to Realm Energy's interests in Poland and to consider and recommend to the board any proposed transaction that is in the best interests of the company. In addition, the company has retained GMP Securities LP as its financial advisor to conduct an analysis and investigation of Realm Energy's strategic alternatives with regards to its interests in Poland.
Realm Energy holds a land position in Poland of 635,000 gross acres (465,000 net) under three exploration permits. Two of these exploration permits are located in the Baltic Basin, northern Poland and one is located in the Podlasie Basin, southeast Poland. A recent independent report, conducted by a reputable reserves evaluator that was commissioned and the results thereof disclosed by an industry participant, has outlined an original gas in place estimate of approximately 100 Bcf per square mile (approx. 156 MMcf per acre) for the shale gas prospects in the Baltic Basin of northern Poland. In addition, there has been a significant increase in industry activity over recent months on land blocks adjacent to Realm Energy's properties in northern Poland.
The company has not set a definitive schedule to complete its strategic review and, notwithstanding the above, no decision on any particular alternative has been reached at this time.
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