EDITOR: | July 15th, 2013

Dundee Energy Limited Announces Negotiations to Refinance Castor Project

| July 15, 2013 | No Comments
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July 15, 2013 — Toronto, Ontario (Source: Marketwired) — Dundee Energy Limited (“Dundee Energy” or the “Corporation) (TSX:DEN) announces today that Watercraft Capital S.A., a Luxembourg corporation (“Watercraft”), has been established for the sole purpose of raising approximately EUR1.434 billion 21.5-year secured Euro-denominated bonds (the “Euro Bonds”) as a refinancing of the Castor underground gas storage facility in Spain. Proceeds raised from the offering will be on-lent to Escal UGS SL to refinance the Castor Project. The terms and conditions of the Euro Bonds have not been finalized and remain subject to regulatory and other customary approvals.

In connection with the proposed offering, the European Investment Bank has agreed to provide a credit enhancement facility for up to EUR200 million to support the issuance of the Euro Bond. In anticipation of the issuance, Watercraft has obtained an expected rating from Fitch Ratings, Inc. of BBB+(EXP) and a preliminary rating from Standard & Poor’s of BBB on the Euro Bond.

ABOUT THE CORPORATION

Dundee Energy Limited is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high impact energy projects. Dundee Energy holds the largest accumulation of producing oil and gas assets in Ontario, and it holds a 24.6% interest in the Castor offshore underground natural gas storage facility in Spain mentioned above. The Corporation’s common shares trade on the Toronto Stock Exchange under the symbol “DEN”.

FORWARD-LOOKING STATEMENTS

Certain information set forth in these documents, including management’s assessment of each of the Corporation’s future plans and operations, contains forward-looking statements. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions or include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation’s control, including: exploration, development and production risks; uncertainty of reserve estimates; reliance on operators, management and key personnel; cyclical nature of the business; economic dependence on a small number of customers; additional funding that may be required to execute on exploration and development work; the ability to obtain, sustain or renew licenses and permits; risks inherent to operating and investing in foreign countries; availability of drilling equipment and access; industry competition; environmental concerns; climate change regulations; volatility of commodity prices; hedging activities; potential defects in title to properties; potential conflicts of interest; changes in taxation legislation; insurance, health, safety and litigation risk; labour costs and labour relations; geo-political risks; risks relating to management of growth; aboriginal claims; volatility of the Corporation’s share price; royalty rates and incentives; regulatory risks relating to oil and natural gas exploration; marketability and price of oil and natural gas; failure to realize anticipated benefits of acquisitions and dispositions; information system risk; and other risk factors discussed or referred to in the section entitled “Risk Factors” in the Corporation’s Annual Information Form for the year ended December 31, 2011.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Raj Shah

Editor:

Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>


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