ASC orders Exall to cease trade

Junior oil firm in receivership and directors have resigned

A Calgary- based junior oil company has been cease- traded by the Alberta Securities Commission after it failed to tell investors that it had gone into receivership and its directors had all resigned.

In a cease trade order issued Tuesday, the ASC stated that Exall Energy Corp. was petitioned into receivership by ATB Financial last Wednesday and MNP Ltd. was appointed receiver. A link to the receivership order can be found on the MNP website.

The ASC said failing to report such a material change immediately is a violation of continuous disclosure laws.

Also Tuesday, the Toronto Stock Exchange announced it had found Exall no longer met listing requirements and its shares and debentures would be suspended from

It hadn’t drilled any new wells in last quarter of 2014.

trading. Stock last traded a week ago, closing at five cents.

Exall’s last news release on its website is dated March 9 and concerns plans to line up financing to pay out its major creditor. The release says its next interest payment — $ 889,000 — under a $ 23- million convertible debenture was due March 31, but it would not have the money without alternative financing.

In a news release March 19, Exall reported a fourth- quarter 2014 net loss of $ 54 million, noting that it hadn’t drilled any new wells in the last three months of the year.

It said production in 2014 fell 38 per cent to an average of 706 barrels of oil equivalent per day.