CALGARY, ALBERTA – As announced in a separate press release issued by Advantage Oil & Gas Ltd. (TSX: AAV) (“Advantage”) which provided an update to Advantage’s strategic review process, Longview Oil Corp. (TSX: LNV) (“Longview”) and Advantage announce that Advantage has entered into an agreement relating to the sale of 21,150,010 Common Shares of Longview (the “Common Shares”) owned by Advantage to a syndicate of underwriters led by RBC Capital Markets and FirstEnergy Capital Corporation at a price of $4.45 per share for gross proceeds of CDN$94.1 million. Closing of the offering is anticipated to be on or about February 26, 2014. 

 

Longview will not receive any proceeds from the sale of the Common Shares. Following closing, Advantage will not hold any Common Shares of Longview. Longview currently pays a monthly dividend in the amount of $0.04 per Common Share. The first dividend that purchasers under this offering shall be eligible to participate in if declared by the Board of Directors of Longview, will be for the month of February, anticipated to be paid on March 17, 2014 to shareholders of record as at February 28, 2014. 

 

All net proceeds from the offering will be received by Advantage and will immediately be used to retire a portion of Advantage’s existing bank indebtedness. 

 

With the continued progression of both Advantage's and Longview's business plans, the companies have terminated the Technical Services Agreement (“TSA”). The termination of the TSA and disposition of the Common Shares will reduce financial and operational complexity and simplify Advantage’s organizational structure. 

 

The TSA has existed between Advantage and Longview since April 2011 whereby Advantage provided the necessary personnel and technical services to manage Longview's business. Appropriate staffing and systems are now in place to enable both organizations to run independently following termination of the TSA. 

 

Consistent with the termination of the TSA, Craig Blackwood has resigned as Chief Financial Officer of Longview and will remain as Vice President Finance and Chief Financial Officer of Advantage. Carey Baker has been appointed Chief Financial Officer of Longview. Carey was previously Controller for Longview and has 25 years of experience in the oil and gas sector.