Coastal Energy Company announced it has entered into an agreement with Macquarie Capital Markets Canada Ltd. (the Lead Underwriter) to sell, on a bought-deal basis, 14.3 million common shares at a price of C$3.50 per common share for gross proceeds of approximately C$50.1 million (the Offering).
Coastal Energy will grant the Lead Underwriter an option to purchase an additional 2.145 million common shares exercisable at a price of C$3.50 per common share for a period of 30 days from the closing date (the Over-Allotment Option).
If the Over-Allotment Option is exercised in full, additional gross proceeds will be approximately C$7.5 million for total gross proceeds of approximately C$57.6 million. The offering is scheduled to close on or about Jan. 8, 2008.
Coastal Energy plans to use the net proceeds of the Offering to fund its offshore development opportunities and for general corporate purposes.
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