Seven Generations Announces Closing of C$251 Million Equity Financings, Increased Credit Facility and Operational Update
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Dec. 18, 2013 /CNW/ - Seven Generations Energy Ltd. (the "Company") is pleased to announce the following recent developments.
The Company recently closed equity financings in the gross amount of approximately $251 million which consisted of a small private placement to management and employees and a $250 million marketed private placement to institutions and qualified individual investors (the "Equity Offerings"), all at a price of $25.00 per share. The net proceeds from the Equity Offerings will be used to finance the drilling, completion and associated infrastructure investments to enable growth of the Company's Kakwa River Project.
The Company also recently increased its debt capacity by expanding its existing revolving credit facility from $60 million to $150 million. RBC Capital Markets led the facility upsize, acting as Lead Arranger and Sole Bookrunner, with Credit Suisse AG, TD Bank and CIBC also included as lenders in the banking syndicate.
Finally, the Company and Pembina Pipeline Corporation ("Pembina") have entered into agreements which provide for the Company to deliver up to 21,000 bbls/d of natural gas liquids, condensate and crude oil into Pembina's Peace pipeline system. The Company's CEO, Pat Carlson, said, "these arrangements, in combination with pre-existing rich gas market arrangements with a third party, provide a market for the Company's expected production of up to 250 MMscf/d of raw gas anticipated in 2016."
Seven Generations Energy Ltd. is a private Canadian company headquartered in Calgary and with an operations centre in Grande Prairie, Alberta, whose only asset is the Kakwa River Project near Grande Prairie. The Kakwa River Project consists of an approximately 270,000 net acre land base including approximately 250,000 net acres of Montney rights. The Company launched into large scale development of its lands by contracting seven drilling rigs in the summer of 2013. In the second half of 2013, the Company has completed and tested eleven wells from the Montney zone. Initial (best) 24 hour test rates of new wells ranges from 4 MMscf/d to 27 MMscf/d with an average of approximately 12 MMscf/d. Associated with these volumes of rich raw gas, these tests have produced 400 bbls/d to 3,300 bbls/d of natural gas condensate, with an average of approximately 1,700 bbls/d. Six of the new wells are now tied in and on production. Three more new wells are anticipated to be on production by year end. The Company expects that when fully developed, the Kakwa River Project will possess the capacity to deliver up to 2.0 Bscf/d of sales gas and more than 200,000 bbls/d of natural gas liquids (ethane through condensate).
This press release is not an offer of the shares in the United States. The shares have not and will not be registered under the U. S. Securities Act of 1933, as amended (the "US Securities Act"). The shares may not be offered or sold, except to accredited investors in reliance on the exemption from registration provided by Regulation D under the US Securities Act, or to persons outside the United States in compliance with Regulation S and applicable Canadian exemptions. Any public offering of securities made in the United States would be made by means of a prospectus that would be obtainable from the Company and that would contain detailed information about the Company, its management and financial statements.
This press release may contain forward-looking information and statements regarding the Company. Any statements included in this press release that address activities, events or developments that the Company "expects," "believes," "plans," "projects," "estimates" or "anticipates" will or may occur in the future are forward-looking statements. Estimates of reserves and resources are also forward-looking statements. Actual results may differ materially due to a variety of important factors. Among other items, such factors might include: planned and unplanned capital expenditures; changes in general economic conditions; uncertainties in reserve, resource and production estimates; unanticipated recovery or production problems; weather-related interference with business operations; the effects of delays in completion of, or shut-ins of, gas and liquids gathering systems, pipelines and processing facilities; potential costs associated with complying with new or modified regulations; oil and natural gas prices and competition; the impact of derivative positions; production expense estimates; cash flow and cash flow estimates; drilling and operating risks; our ability to replace oil and gas reserves; volatility in the financial and credit markets or in oil and natural gas prices. Except as required by law, the Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change. Do not place undue reliance on forward-looking information. Unless otherwise indicated, all references to monetary amounts are in Canadian dollars.
SOURCE Seven Generations Energy Ltd.For further information: