Cardinal Energy Ltd. ("Cardinal") (TSX:CJ) is pleased to announce that it has entered into agreements with two private companies to purchase assets in Cardinal's core Bantry area for an aggregate purchase price of approximately $27 million before adjustments (the "Acquisitions"). The Acquisitions add approximately 350 Boe/d (90% oil and NGLs) of high netback production. In connection with the Acquisitions, Cardinal also announces a bought deal private placement of approximately $28 million (the "Private Placement"). A key attribute of the acquired assets is that there is no royalty payable on the producing properties which results in high netbacks. In the current commodity price environment, Cardinal expects netbacks on the acquired production of approximately $50 per Boe. There are 5 sections of 100% working interest lands that come with the Acquisitions and management estimates that there are 6 horizontal development drilling locations and 4 vertical drilling locations on these lands. The Acquisitions provide Cardinal a 100% operated working interest in the properties and is consistent with Cardinal's business plan of doing complimentary tuck in acquisitions in its core operating areas. The Acquisitions add proved plus probable reserves of approximately 975,000 Boe, based on Cardinal's internal evaluation prepared by a member of Cardinal's management who is a qualified reserves evaluator in accordance with National Instrument 51-101 effective December 31, 2013 , of which 90% are medium quality oil. The Acquisitions will be accretive to our cash flow from operations, production and reserves of a fully diluted per share basis both before and after the Private Placement. PRIVATE PLACEMENT Cardinal has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets Inc. and CIBC and including GMP Securities L.P. , Macquarie Capital Markets Canada Ltd. , Scotiabank and FirstEnergy Capital Corp. (collectively the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought-deal private placement basis, 2,187,500 common shares (the "Common Shares") at a price of $12.80 per Common Share for aggregate gross proceeds of approximately $28 million . The Common Shares will be offered in all of the provinces of Canada by way of private placement. The Common Shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the closing of the Private Placement in accordance with applicable securities legislation. Completion of the Acquisitions and the Private Placement is subject to certain conditions including normal regulatory approvals and the approval of the Toronto Stock Exchange . Closing of the Acquisitions and the Private Placement is expected to occur on or about February 10, 2014 . This press release does not constitute an offer of Common Shares of Cardinal for sale in the United States . The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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