CALGARY, Sept. 17, 2012 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is very pleased to announce
that the second tranche of its $10.0 million non-brokered private
placement (the "Offering") was oversubscribed and has now closed.
Pursuant to the second closing of the Offering, PetroFrontier issued
7,913,613 units (the "Units") at a price of $0.65 per Unit for gross
proceeds of $5,143,848. Each Unit consists of one common share
("Share") and one common share purchase warrant ("Warrant"). Each
Warrant entitles the holder thereof to acquire one additional Share at
a price of $0.90 per Share. The Warrants will expire on September 8,
2014 (the "Warrant Expiry Date"), unless the volume weighted average
trading price of the Shares on the TSX Venture Exchange Inc. during the
10 consecutive trading days immediately prior to the date for which
such calculation is made is greater than $1.125 (the "Trigger Event").
If a Trigger Event occurs, the Warrant Expiry Date may, at the option
of PetroFrontier, be accelerated to the later of: (i) 30 business days
from the Trigger Event date; and (ii) one month following the expiry of
the applicable hold period required under securities laws.
Proceeds from the Offering will be used to fund the remainder of
PetroFrontier's 2012 joint capital expenditure program with Statoil
Australia Oil and Gas AS and for general corporate purposes. The
Offering is subject to regulatory approval, including the approval of
the TSX Venture Exchange Inc. The securities sold pursuant to the
Offering will be subject to a four month hold period.
PetroFrontier's three well completion program is ongoing and the
completions crew is currently rigging up at the second horizontal well
location, Baldwin-2Hst1 (EP 103).
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in the
exploration, acquisition and development of both conventional and
unconventional onshore petroleum assets in Australia's Southern
Georgina Basin. Founded in 2009, PetroFrontier is one of the first
companies to undertake onshore exploration in the Southern Georgina
Basin in Australia's Northern Territory. PetroFrontier's head office is
in Calgary, Alberta and its operations office is in Adelaide, South
Australia. PetroFrontier's common shares are listed on the TSX Venture
Exchange under the symbol "PFC".
This press release may contain forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of PetroFrontier, including, without limitation,
statements pertaining to the closing of the Offering and the
anticipated use of proceeds. All statements included herein, other
than statements of historical fact, are forward-looking information and
such information involves various risks and uncertainties. There can
be no assurance that such information will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in PetroFrontier's disclosure
documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this
release and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise them
to reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: PetroFrontier Corp.
For further information:
President and CEO
Manager, Investor Relations
Suite 320, 715 5 Ave. S.W.
Calgary, Alberta, Canada T2P 2X6
Telephone: (403) 718-0366
Toll Free: (877) 822-7280
Fax: (403) 718-3888