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CALGARY, July 17, 2013 /CNW/ - Dixie Energy Trust ("Dixie" or the "Trust") is pleased to announce that it has completed a second closing of its previously announced brokered and non-brokered private placement financing (the "Financing"), involving the issuance of an aggregate of 1,455,000 trust units ("Trust Units") at an issue price of $0.80 per Trust Unit for aggregate gross proceeds of $1,164,000. In total, when combined with the Trust Units issued in connection with the first closing of the brokered and non-brokered private placement completed on June 28, 2013, Dixie has issued an aggregate of 16,621,980 Trust Units for aggregate gross proceeds of $13,297,584. Casimir Capital Ltd. acted as the sole agent on behalf of the Trust in connection with the brokered portion of the Financing.
Dixie intends to use the net proceeds of the Financing for general corporate purposes and to fund its capital expenditure program, including in relation to the recently completed acquisition of additional working interests in certain oil and gas leases located in Mississippi and Alabama announced on July 3, 2013.
Dixie is an energy trust created to provide investors with an oil and gas exploration focused investment. The strategy of Dixie is to acquire, exploit and develop, indirectly through its subsidiaries, long-life crude oil and gas prospects and reserves in the United States gulf coast states, primarily in Mississippi and Alabama.
Forward Looking Statement Disclaimer
Certain statements included in this news release constitute forward looking statements or forward looking information under applicable securities legislation. Such forward looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward looking statements or information in this news release include, but are not limited to, the use of the net proceeds from the Financing.
Forward looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Dixie believes that the expectations reflected in such forward looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Dixie can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, that Dixie will spend the net proceeds of the Financing in the manner described herein. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used.
Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Dixie and described in the forward looking statements or information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or information include, among other things: the ability of management to execute its business plan; the risk that Dixie may re-allocate the use of proceeds from the Financing; the risk of instability affecting the jurisdictions in which Dixie operates; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; risks and uncertainties involving geology of oil and natural gas deposits; the ability of Dixie to add production and reserves through acquisition, development and exploration activities; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in Dixie's marketing operations, including credit risk; health, safety and environmental risks; risks associated with existing and potential future law suits and regulatory actions against Dixie; and uncertainties as to the availability and cost of financing. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The forward looking statements or information contained in this news release are made as of the date hereof and Dixie 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 required by applicable securities laws. The forward looking statements or information contained in this news release are expressly qualified by this cautionary statement.
© 2013 Dixie Energy Trust
All rights reserved. All other trademarks are the property of their respective owners.
SOURCE: Dixie Energy Trust
For further information:
David G. Anderson
T: 403 232 1010