/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
CALGARY, Nov. 15 /CNW/ - Breaker Energy Ltd. (TSX:WAV.A and WAV.B)
("Breaker" or the "Company") is pleased to announce that it has entered into
an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp.
and including Tristone Capital Inc., Blackmont Capital Inc., Dundee Securities
Corporation, Wellington West Capital Markets Inc., BMO Capital Markets and
Scotia Capital Inc. under which they have agreed to purchase for resale to the
public, on a bought deal basis, 800,000 Common Shares on a Flow-Through basis
("Flow-Through Shares) at $6.90 each for aggregate gross proceeds of
$5,520,000. All sales of Flow-Through Shares will be made on a private
placement basis pursuant to exemptions from the prospectus requirements of
applicable securities laws.
Closing is anticipated to occur on or about November 29, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock Exchange.
The Flow-Through Shares will be subject to a four-month hold period.
Gross proceeds from the sale of the Flow-Through Shares will be used to
fund ongoing exploration activities eligible for Canadian exploration expenses
which will be renounced in favour of the subscribers of the Flow-Through
Shares effective on or before December 31, 2007.
Breaker will expand its 2007 capital program by an additional
$7.5 million to a total of $67.5 million, with an increased focus on
high-netback light oil projects at Irricana and Girouxville. At Breaker's
large light oil pool in Irricana, funds will be used to accelerate drilling
new horizontal wells, and to recomplete existing horizontal wells with
multiple fracture technology. As announced November 7th, Breaker has had
significant success in this pool, with its first two new wells significantly
outperforming the historical average well in the pool. Breaker's first
multiple fracture operation on a previously-drilled horizontal well resulted
in a more than tenfold increase in production rate, from 10 boe/d to a recent
average rate of 110 boe/d, approximately one month after being put back on
production. Breaker will also drill additional exploratory wells at
Girouxville, where it has recently demonstrated a 100 percent success rate
discovering high rate light oil pools.
Breaker's financial and operational flexibility gives it the ability to
take advantage of current royalty rates via accelerated field activity to
maximize the net present value of its high netback light oil drilling
A portion of the Flow-Through proceeds will also be invested in shooting
a 3D seismic program early in 2008 on Breaker's 100 percent working interest
high impact prospect in Monias, British Columbia. The prospect is a deep Leduc
reef with an unrisked potential target size of 1 TCF.
Breaker re-iterates its previous guidance for 2007, as the increased
field activity late in the fourth quarter will not result in appreciable
increased production until early 2008.
Breaker Energy Ltd. is a junior oil and gas company focused on creating
shareholder value by growing per share production and reserves through
acquisitions and a focused exploration, development and exploitation plan.
Breaker has 35,130,258 Class A shares and 900,000 Class B shares
Breaker trades on the Toronto Stock Exchange under the symbols WAV.A and
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of Breaker within the United
States. The securities of Breaker have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "1933 Act"),
or any state securities laws. Accordingly, the shares may not be offered or
sold in the United States or to U.S. persons (as such terms are defined in
Regulation S under the 1933 Act) unless registered under 1933 Act and
applicable state securities laws or an exemption from such registration is
This press release contains forward-looking statements concerning the
Company's expectations of future production, cash flow, earnings and expansion
of its oil and gas property interests and concerning the Company's exploration
and development drilling, seismic operations, regulatory applications, payout
estimates, capital expenditures, number and drilling locations, seismic
acquisitions and facility upgrades. These statements are based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ from those anticipated. These risks include,
but are not limited to: the risks associated with the oil and gas industry
(e.g., operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), acquisitions, commodity price, price
and exchange rate fluctuation and uncertainties resulting from competition
from other producers and ability to access sufficient capital from internal
and external sources. Additional information on these and other risk factors
that could affect the Company's operations and/or financial results are
included in the Company's reports on file with Canadian securities regulatory
The forward-looking statements or information contained in this news
release are made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
ADVISORY: This document contains forward-looking statements. More
particularly, this document contains statements concerning the anticipated
closing date of the offering and the anticipated use of the net proceeds of
the offering. Although Breaker believes that the expectations reflected in
these forward-looking statements are reasonable, undue reliance should not be
placed on them because Breaker can give no assurance that they will prove to
be correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
The closing of the offering could be delayed if Breaker is not able to
obtain the necessary regulatory and stock exchange approvals on the timelines
it has planned. The offering will not be completed at all if these approvals
are not obtained or some other condition to the closing is not satisfied.
Accordingly, there is a risk that the offering will not be completed within
the anticipated time or at all.
The intended use of the net proceeds of the offering by Breaker might
change if the board of directors of Breaker determines that it would be in the
best interests of Breaker to deploy the proceeds for some other purpose, such
as an acquisition.
The forward-looking statements contained in this press release are made
as of the date hereof and Breaker undertakes no obligations to update publicly
or revise any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required by
applicable securities laws.
The TSX does not accept responsibility for the adequacy or accuracy of
For further information:
For further information: Dan O'Neil, President & Chief Executive
Officer, (403) 215-5264; or Max Lof, Vice President, Finance & Chief Financial
Officer, (403) 215-5264, email@example.com, www.breakerenergy.com