/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
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.
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