Exall Energy goes into receivership — doesn't tell shareholders

Exall Energy, a tiny Calgary-based oil and gas company, entered into receivership on March 25. Its board of directors has resigned. But, the company didn't inform shareholders or the Alberta Securities Commission.

Tiny Calgary energy company victim of high debt and low prices

Exall Energy, a tiny Calgary-based oil and gas company, went into receivership last week, sunk under the weight of its $34 million in bank debt.

But, the company failed to inform shareholders, or the Alberta Securities Commission, which issued a cease trade order only on March 30.

"The cease trade order was issued after ASC staff determined that Exall Energy failed to disclose, in accordance with Alberta securities laws, that it had entered into receivership and that its board of directors had resigned," the ASC said in a release.

Exall has six employees and in 2014 it produced a little more than 700 barrels equivalents a day of oil, natural gas and natural gas liquids, mostly in the Slave Lake area of northern Alberta.

It carried bank debt to the tune of $34 million. According to its financial statements, that debt was owed to a senior Canadian lender. ATB Financial, which is owned by the Alberta government, requested that Exall be placed into receivership.

Exall also issued $20 million in convertible debentures that were sold to investors and traded on the TSX.

A publicly traded company has the responsibility to issue a news release when there's a material change in its fortunes, such as going into receivership. 

The chairman of Exall is Stephen G Roman, a highly experienced resource investor. The chief executive, Roger Dueck, has 30 years experience in energy exploration.

Calls to the company were not returned. 


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