Elcano Exploration Inc. Announces Sale And Investment Solicitation Process

On February 26, 2019, Elcano Exploration Inc. and its affiliates Elcano Exploration Ltd. and Elcano Energy Partnership (collectively, "Elcano" or the "Company") commenced restructuring proceedings under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an initial order (the “Initial Order”) granted by the Alberta Court of Queen’s Bench (the "Court"). Hardie & Kelly Inc. has been appointed as Monitor of the CCAA proceedings (the “Monitor”).

The CCAA proceedings enable the Company to maintain normal business operations through a restructuring process. Pursuant to the Initial Order, the Company has also initiated a sale and investment solicitation process (“SISP”) to be conducted in conjunction with the CCAA proceedings. GMP FirstEnergy has been engaged as financial advisor to the Company in connection with the SISP.

Elcano and GMP FirstEnergy are seeking parties interested in acquiring or investing in the business or the assets of the Company. The SISP procedures contained in the Initial Order describe the timelines associated with the SISP, the manner in which prospective bidders may gain access to due diligence materials concerning the Company and its assets, the manner in which bidders become Qualified Bidders and bids become Qualified Bids (as each term is defined under the SISP procedures), the receipt and negotiations of Qualified Bids received, the ultimate selection of the successful bidder and the approval thereof by the Company and the Court.

Qualified Bidders, if they wish to submit a bid, will be required to deliver a bid proposal to GMP FirstEnergy at the address specified in the SISP procedures, no later than 5:00 p.m. Mountain Time on April 26, 2019. The bid proposal must be in the form of a non-binding letter of intent for the acquisition of Elcano or all or a portion of its assets, business or undertaking, or any combination thereof, or some other form of transaction (including without limitation, a refinancing or recapitalization), and must comply with the SISP procedures.

A copy of all court orders or amendments thereto, the SISP procedures and other details related thereto may be accessed on the Monitor's website at https://relieffromdebt.ca/elcano-group.

Interested parties that would like to participate in the SISP can contact:

Scott Robertson
Director, Investment Banking
GMP FirstEnergy

Mark Pearson
Director, Acquisitions & Divestitures
GMP FirstEnergy