The placement consisted of the issuance of 9,709,000 Common Shares, issued on a flow-through basis, at $1.03 per Common Share. The syndicate of underwriters was led by Dundee Securities Corporation and included Haywood Securities Inc. The syndicate placed $7 million on a guaranteed agency basis and exercised its over allotment option to place an additional $3 million for a total of $10 million. On closing, the syndicate was paid a cash commission and received warrants entitling them to acquire, for a period of 18 months from closing, 291,270 Common Shares of Questerre at $1.03 per Common Share.
Questerre anticipates the proceeds from this placement will finance its 10 to 15 well exploration drilling program in its new core area of Westlock including its commitments under its recently announced farm-in agreement with Apache Canada Ltd. The proceeds will also be used for an anticipated exploration well in the St. Lawrence Lowlands, Quebec as well as in the Vulcan area later this year.
Michael Binnion, President and Chief Executive Officer, commented "Questerre has tax pools of approximately $30 million which makes this flow-through financing more accretive to our shareholders. With a strong balance sheet we are well positioned to complete our 2006 capital program while we pursue new opportunities."
Questerre Energy Corporation is a Calgary-based independent resource company actively engaged in the exploration, development and acquisition of high-impact exploration and development oil and gas projects in Canada.
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