Kings­land En­ergy files NOI un­der bank­ruptcy act

Stockwatch Daily - - ENERGY - Mr. Jef­frey Al­li­son re­ports

KINGS­LAND EN­ERGY Corp. has re­leased its unau­dited fi­nan­cial re­sults for the sec­ond quar­ter pe­riod ended May 31, 2017.

Dur­ing the six-month pe­riod end­ing May 31, 2017, the cor­po­ra­tion pur­sued sev­eral ini­tia­tives to pro­cure long-term sus­tain­abil­ity in a de­pressed com­mod­ity mar­ket en­vi­ron­ment. The cor­po­ra­tion has suc­cess­fully re­duced of­fice ad­min­is­tra­tion and as­so­ci­ated hu­man re­source cost as it pur­sues fi­nanc­ing ini­tia­tives to re­duce debt and fi­nance growth ini­tia­tives.

The cor­po­ra­tion is con­tin­u­ally work­ing to­ward the re­struc­tur­ing of its long-term debt obli­ga­tion. Its wholly owned sub­sidiary EHR En­hanced Hy­dro­car­bon Re­cov­ery Inc. is eval­u­at­ing a num­ber of new en­ergy tech­nol­ogy busi­ness ini­tia­tives.

Dur­ing the 2016 year, the cor­po­ra­tion has held meet­ings and has com­mu­ni­cated to the deben­ture­hold­ers that the cor­po­ra­tion is not able to pay deben­ture in­ter­ests that have ma­tured or are in the process of ma­tur­ing. The cor­po­ra­tion has made a pro­posal to all deben­ture­hold­ers to con­vert the deben­ture­hold­ers’ in­ter­est, in­clud­ing re­lated in­ter­est amounts, to shares based on a five-cent-per-share amount. The cor­po­ra­tion has re­ceived com­mit­ments for its con­ver­sion plan from the ma­jor­ity of its deben­ture­hold­ers.

On June 30, 2017, the cor­po­ra­tion set­tled $667,653 of the se­cured loan for con­sid­er­a­tion of 631,250 shares of Kings­land Oil Corp. (KOC) and 800,000 com­mon shares for a com­plete re­lease of all amounts owing.

Fi­nan­cial re­sults

(See KLE Ta­ble 1 on page 23)

Rev­enues for the pe­riod were nil com­pared with $38,500 for the pe­riod ended May 31, 2016. Rev­enues for the pe­riod are as­so­ci­ated with con­sult­ing ser­vices. Rev­enues from oil and gas will not re­sume un­til the cor­po­ra­tion acqu i res ex i st i ng pro­duc­tion and re­al­izes rev­enue from the farm-in op­por­tu­ni­ties.

Net loss and com­pre­hen­sive loss for the pe­riod were $120,003, com­pared with a loss of $168,534 as at May 31, 2016. The de­crease is at­trib­ut­able to re­duc­tion in rent, con­sult­ing ex­penses and ev­ery­day op­er­at­ing ex­penses.

To­tal as­sets for the pe­riod were $930,058 ver­sus $1,900,778 as at May 31, 2016. As at May 31, 2017, cur­rent li­a­bil­i­ties were $3,330,098 ver­sus $2,288,333 as at Nov. 30, 2016.

Long-term li­a­bil­i­ties were $148,900 as at May 31, 2017, com­pared with $875,900 as at May 31, 2016. The de­crease in long-term debt is the net re­sult of ma­tur­ing deben­tures re­sult­ing in re­clas­si­fi­ca­tion from long-term debt to cur­rent debt.

The cor­po­ra­tion also an­nounces that it has filed to­day a no­tice of in­ten­tion to make a pro­posal pur­suant to the pro­vi­sions of the Bank­ruptcy and In­sol­vency Act (Canada). Hardie & Kelly Inc. has been ap­pointed as the trustee in the cor­po­ra­tion’s pro­posal pro­ceed­ings and will as­sist the cor­po­ra­tion in its

re­struc­tur­ing ef­forts.

The ac­tion by Kings­land En­ergy has been taken as a re­sponse to pend­ing lit­i­ga­tion by a cred­i­tor of the cor­po­ra­tion. The fil­ing of the no­tice of in­ten­tion has the ef­fect of im­pos­ing an au­to­matic 30-day stay of pro­ceed­ings that will pro­tect the cor­po­ra­tion and its as­sets from the claims of cred­i­tors while the cor­po­ra­tion pur­sues its re­struc­tur­ing ef­forts.

The cor­po­ra­tion be­lieves that the ac­tion it has taken will be ben­e­fi­cial to all stake­hold­ers by giv­ing the cor­po­ra­tion the time and re­sources needed to deal with its out­stand­ing debt and to find other sources of fi­nanc­ing or take op­por­tu­nity to merge with or be ac­quired by an­other com­pany.

The cor­po­ra­tion will pro­vide fur­ther up­dates as to the next steps of the process when these have been de­ter­mined.

We seek Safe Har­bor.

Erika Flores con­densed this news re­lease (erikaf@stock­

Jef­frey D Al­li­son, Lionel Peter Kam­beitz, Mur­ray Wayne Pierce

(KLE) Shares: 75,532,228

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