Pipestone Energy Corp. Announces Renewal of Normal Course Issuer Bid

CALGARY, Alberta, Nov. 23, 2022 (GLOBE NEWSWIRE) -- (PIPE – TSX) Pipestone Energy Corp. (“Pipestone” or the “Company”) is pleased to announce the Toronto Stock Exchange (the “TSX”) has accepted the notice filed by the Company to renew its normal course issuer bid (the “NCIB”). Pipestone’s inaugural NCIB was launched in November 2021 and has been fully executed with the purchase and cancellation of 9,598,347 common shares of the Company (the “Common Shares”) for an average price of $4.44 per share.

The NCIB allows Pipestone to purchase up to 13,936,907 Common Shares, representing 5% of its 278,738,148 outstanding Common Shares as at November 14, 2022. The renewed NCIB is scheduled to commence on November 25, 2022 and is due to expire no later than November 24, 2023. Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX and other alternative trading platforms in Canada and in accordance with the rules of the TSX governing NCIB’s.

The total number of Common Shares Pipestone is permitted to purchase is subject to a daily purchase limit of 156,214 Common Shares, representing 25% of the average trading volume of 624,856 Common Shares on the TSX calculated for the six-month period ended October 31, 2022 excluding 5,107,800 Common Shares that the Company repurchased pursuant to its previous NCIB during this period; however, Pipestone may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any Common Shares that are purchased under the NCIB will be cancelled upon their purchase by the Company.

The Company intends to enter into an automatic securities purchase plan effective November 25, 2022, under which its broker may purchase Common Shares in connection with the NCIB. The plan will contain a prearranged set of criteria in accordance with which its broker may make Common Share purchases. These strict parameters enable the purchase of Common Shares during times when it would ordinarily not be permitted due to self-imposed blackout periods, insider trading rules or otherwise. Such plan is adopted in accordance with applicable Canadian securities laws. Outside of blackout periods, Common Shares may be purchased under the NCIB in accordance with management’s discretion.

As previously announced, Pipestone is committed to a multi-faceted approach to shareholder returns as part of its allocation of free cash flow strategy. In addition to the renewal of the NCIB, Pipestone has implemented a quarterly base dividend of $0.030 per Common Share, commencing in Q1 2023. The Company also has previously announced its intention to launch a Substantial Issuer Bid for up to $50 million in Q1 2023.

Pipestone Energy Corp.

Pipestone is an oil and gas exploration and production company focused on moderately growing its condensate-rich Montney asset base, while delivering meaningful shareholder returns. Pipestone expects to grow its production to 32 Mboe/d (midpoint) in 2022 and to approximately 45 Mboe/d by exit 2025, while generating significant free cash flow. Pipestone is committed to building long term value for our shareholders while maintaining the highest possible environmental and operating standards, as well as being an active and contributing member to the communities in which it operates. Pipestone has achieved certification of all its production from its Montney asset under the Equitable Origin EO100^TM Standard for Responsible Energy Development. Pipestone shares trade under the symbol PIPE on the TSX. For more information, visit www.pipestonecorp.com.

Pipestone Energy Contacts: