CALGARY, July 24, 2018 /CNW/ - Vesta Energy Corp. ("Vesta" or the "Company") is pleased to announce today that it has completed a C$200 million offering of senior unsecured notes due 2023 with a coupon of 8.125% (the "Notes").
Vesta intends to use the net proceeds from the sale of the Notes to fund its light oil development of the East Shale Duvernay and for general corporate purposes.
Curtis Cook, President and Chief Executive Officer of Vesta, commented:
"With the successful closing of Vesta's inaugural offering in to the capital markets, the Company is well positioned to execute on the build out of one of the most competitive light oil resource plays in North America. We are very pleased with the support shown by investors to the Company, which has allowed us to upsize the offering from C$150 million to C$200 million and provide Vesta with significant financial flexibility. Vesta's business plan and asset base is further validated by our ability to access the capital markets and finance our organic capital program."
RBC Capital Markets and BMO Capital Markets acted as joint-bookrunners for the offering.
This news release does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities of the Company and shall not constitute an offer, solicitation, purchase or sale of securities in any jurisdiction in which such an offer, solicitation, purchase or sale would be unlawful.
Vesta Energy Corp. is a privately held, growth-oriented exploration and production company focused on the exploration, development and production of light oil-weighted properties in the Duvernay East Shale Basin in the Joffre area of central Alberta. As the first mover in to the basin, Vesta is the largest landholder in the play having accumulated approximately 305,000 acres of contiguous land in the core of the light oil window, and is currently producing approximately 10,000 barrels of oil equivalent a day.
Forward-Looking Information and Statements
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements may be identified by the use of words such as "expects", "anticipates", "estimates", "believes", "may", "will", "projects", "should", "plans", "intends" "forecasts" and similar words and expressions. In particular, this news release contains forward-looking statements relating to the offering, including the anticipated use of the net proceeds of the offering.
Forward-looking statements reflect the Company's views at the time such statements are made with respect to future events and are subject to certain risks, uncertainties and assumptions. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which such forward-looking statements are based will occur.
The forward-looking statements contained in this news release are made as of the date hereof, and the Company does not assume or undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws.
SOURCE Vesta Energy Corp.
For further information: Paul R. Smith, CFO & EVP Corporate Development, +1 587-885-0346, email@example.com