CALGARY, June 15 /CNW/ - Spry Energy Ltd. ("Spry" or the "Corporation") announces that it has closed its previously announced private placement (the "Offering"). Pursuant to an agreement with Acumen Capital Finance Partners Limited (the "Underwriter"), the Corporation issued 772,600 common shares ("Common Shares") at a price of $7.00 per Common Share and 187,500 Common Shares issued on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at a price of $8.00 per Flow-Through Share for total gross proceeds of $6,908,200.
The Corporation intends to use the net proceeds of the private placement of Common Shares to fund the Corporation's exploration and development program and for general working capital purposes. The gross proceeds from the sale of the Flow-Through Shares will be used by Spry to incur eligible Canadian exploration expense, which will be renounced to subscribers of the Flow-Through Shares effective on or before December 31, 2010.
The Common Shares and Flow-Through Shares issued under the Offering are subject to a four month hold period.
Spry is a Calgary, Alberta based Corporation engaged in the exploration, development and production of oil and natural gas.
Forward Looking Statements
This news release contains forward-looking statements relating to the Corporation and the use of proceeds from the Offering. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.
These forward-looking statements are based on various assumptions including expectations regarding the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; the timing, location and extent of future operations; anticipated timing and results of capital expenditures; estimates of future production; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates; impact of increasing competition; ability to market oil and natural gas successfully and the ability of Spry to access capital. While Spry considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; the board of directors of Spry determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose; general economic conditions in Canada, the U.S. and globally; delays resulting from or inability to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Spry believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE SPRY ENERGY LTD.
For further information: For further information: Kenneth Bowie, President & CEO, Phone: 403-984-6352, Fax: 403-265-7010; Bill Lewington, Vice President, Finance & CFO, Phone: 403-984-6355