TSX-V SYMBOL: ANG
CALGARY, March 31 /CNW/ - AltaCanada Energy Corp. (ANG:TSX-V) announces that, subject to all necessary regulatory approvals, it will be issuing rights to all shareholders at the applicable record date to purchase approximately 1.424 Common Shares for each Common Share then held, at a expected price of $ 0.07 per share for a maximum aggregate of approximately $ 7.5 million. The rights and the Common Shares issuable on the exercise of the rights will be qualified by prospectus. The rights will trade for a period of at least 21 days to allow shareholders who do not wish to exercise their rights an opportunity to sell such rights. Shareholders will be allowed to subscribe for as many Common Shares as they wish in order to participate in a prorate allocation of Common Shares issuable on rights not otherwise exercised. The Company anticipates the rights offering will be concluded by the end of May, 2010.
ANG Partners, Ltd. an affiliate of James Collins of McAllen, Texas, a director and substantial shareholder of the Company, has agreed to backstop $ 5,020,000 of the rights issue and will subscribe for 71,714,286 Common Shares. In the event that all the rights issued are exercised, ANG's subscription would be reduced to 22,181,065 Common Shares. Following the rights offering, if fully exercised, the Company will have 175,000,000 Common Shares outstanding and James Collins will own or control between 37,757,656 and 87,290,877 Common Shares.
The use of proceeds from the issue will be to provide working capital for development and acquisition opportunities and for repayment to creditors, including holders of $ 3.174 million of convertible debentures. The company's first priority will be to maintain natural gas production from the Company's existing lands through refrac's and low risk recompletions. Oil targets in both the Jurassic Shaunavon and Bakken formations are being developed adjacent to the Company's Montana block. The additional capital raised may pursue these targets or in combination with appropriate farmout arrangements.
Subsequent to the rights issue, AltaCanada intends to consolidate the share capital of the Company on a 1 for 10 basis, and rename the Company, Montana Oil and Gas Corp. A shareholders meeting held on January 11, 2010 approved these matters.
Financial results of 2009 and reserve report effective December 31, 2009 will be published on or before April 16, 2010.
The Company is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana. For more information on the Company, visit www.altacanada.com.
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SOURCE ALTACANADA ENERGY CORP.
For further information: For further information: Donald Foulkes, President & CEO, Telephone: (403) 265-9091 (ext 248), Fax: (403) 265-9021, Email: email@example.com; Donald Jackson, Executive VP & COO, Telephone: (403) 265-9091 (ext 234), Fax: (403) 265-9021, Email: firstname.lastname@example.org