CALGARY and LONDON, March 18 /CNW/ - Stratic Energy Corporation
(TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces that it
has reached agreement for a private placement of US$42.5 million Subordinated
Convertible Notes, due 2013, (the "Notes") to a group of US investors, subject
to certain conditions described below. The Company may issue further Notes on
the same terms up to the total maximum facility amount of US$50.0 million.
The Notes will be convertible, at the option of the holders, into common
shares of Stratic at a price of US$1.00 per common share, at any time until
their maturity. This represents a premium of 45% to yesterday's closing price
of the Company's common shares on the TSX-Venture Exchange, translated at the
exchange rate at that time.
The Notes will be redeemable by the Company after the second anniversary
of issuance, at par plus accrued interest to the redemption date, provided
that the average closing price of the Company's common shares on their primary
exchange for the preceding 20 trading days is greater than Canadian $1.75 per
Interest on the Notes is 9.0% per annum, payable semi-annually. At the
Company's option, interest may either be paid in cash or capitalised as
additional principal of the Notes, subject to the same interest and conversion
terms. The final maturity of the Notes is five years from the date of closing.
The notes will be subordinated to Stratic's senior secured debt and rank
pari passu with the Company's existing US$15.0 million convertible Notes due
Closing of the transaction is subject to full documentation, approval by
the TSX-Venture Exchange and limited further due diligence.
Ingalls & Snyder Value Partners L.P., an advisory client of Ingalls &
Snyder LLC, certain of whose other clients own 14,702,561 common shares of the
Company, has agreed to purchase US$25.0 million of the Notes.
Proceeds of the Notes will be available to fund Stratic's capital
expenditure programs and for general corporate purposes. In particular, the
Company anticipates using the proceeds to support its capital expenditure
programs for 2008/09, principally in the United Kingdom and Dutch sectors of
the North Sea. While the majority of the expenditure on its development
projects is expected to be funded from Stratic's recently announced new debt
facilities, the Company considers it appropriate to maintain a balance of
funding sources for its capital expenditures. Work towards completion of those
debt facilities is progressing satisfactorily.
Notes to Editors:
1. About Stratic: Stratic Energy Corporation is a Canadian-incorporated
international oil and gas business focused on adding value
principally through the appraisal, development and production of
existing discoveries, supplemented by a low to moderate risk
exploration program. Stratic's principal interests are in the UK and
Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares
are listed on the TSX Venture Exchange in Toronto and on AIM, London
and its principal operating office is in London, UK.
This news release contains certain forward looking statements, which
involve assumptions with respect to future plans, production levels and
results, and capital expenditures. The reader is cautioned that all such
forward looking statements involve substantial risks and uncertainties and the
assumptions used in their preparation may not prove to be correct. Stratic's
actual results could differ materially from those expressed in, or implied by,
these forward looking statements and accordingly, the forward looking
statements are qualified by reference to these cautionary statements. The
forward looking statements contained herein are made as at the date of this
news release. Stratic undertakes no obligation to update or publicly revise
forward looking statements or information unless so required by applicable
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Kevin Watts, Chief Executive Officer, +44 20
77667900; Peter Thomas, Chief Financial Officer, +44 20 77667920; Patrick
d'Ancona, M: Communications, +44 20 7153 1547; Canadian Investor Relations,
Roger Fullerton, (952) 929-7243, Email: email@example.com,