Pacific Stratus plans to use the net proceeds of this financing for the repayment of its 13% senior unsecured notes, completion of the 2007 drilling program at La Creciente, the construction of the La Creciente production facilities and gas pipeline, the development of Moriche and the construction of production facilities, the technical evaluation of new blocks in the Llanos Basin, and for general corporate purposes.
The company has granted to the Underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the offering, to purchase up to an additional 1.875 million common shares at the offering price. If the option is fully exercised, the total gross proceeds of the financing will be $143.75 million. The common shares to be issued under the offering will be offered by way of a short form prospectus in all the provinces of Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The offering is scheduled to close on or about April 19, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
The preliminary short form prospectus in respect of the financing was previously filed on March 16, 2007.
Pacific Stratus Energy is a Canadian-based oil and gas company that initiated operations in 2004. The company is focused on identifying attractive opportunities primarily within the upstream Sub Andean basins. Pacific Stratus has a current net production of 2,200 barrels of oil per day, with working interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under dispute), La Creciente, Moriche and Guama blocks in Colombia. The company has offices in Toronto, Caracas and Bogota.
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