Non-brokered deal funds acquisition of natural gas assets in Alberta
By Devika Patel
Knoxville, Tenn., Nov. 9 – Pine Cliff Energy Ltd. said it plans a C$3 million non-brokered private placement of stock.
The company will sell the common shares at C$1.08 apiece. The price per share is a 4.43% discount to the Nov. 6 closing share price of C$1.13.
Settlement is expected Feb. 3.
The company also said it plans to acquire natural gas weighted assets in the Viking and Ghost Pine areas of Central Alberta from a senior oil and gas producer for C$185 million. The assets are producing about 11,730 barrels of oil equivalent per day, weighted 89% to natural gas, 7% to oil and 4% to natural gas liquids.
Pine Cliff also plans to sell 55.6 million subscription receipts at C$1.08 apiece in a C$60.05 million public offering. The public deal has an C$8.96 million greenshoe and will be conducted by a syndicate of underwriters co-led by Haywood Securities Inc. and Clarus Securities Inc.
Proceeds from both offerings will be used for the acquisition.
Pine Cliff is an oil and natural gas exploration and development company based in Calgary, Alta.
| Issuer: | Pine Cliff Energy Ltd.
|
| Issue: | Common shares
|
| Amount: | C$3 million
|
| Price: | C$1.08
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Nov. 9
|
| Settlement date: | Feb. 3
|
| Stock symbol: | TSX Venture: PNE
|
| Stock price: | C$1.13 at close Nov. 6
|
| Market capitalization: | C$262.98 million
|
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