Excelsior's North Sea Subsidiary Closes Financing, Appoints New Board
Excelsior Energy Limited has closed a $1 million private placement in its North Sea subsidiary, 1385302 Alberta Ltd. (NorthseaCo) as previously disclosed on April 9, 2008.
The private placement consisted of 4,000,000 units issued at a subscription price of $0.25 per Unit. Each unit consists of one common share in the capital of the NorthseaCo and one half of a common share purchase warrant of NorthseaCo. Each whole Warrant entitles the holder thereof to acquire one Common Share at a price of $0.60 per Common Share. The Warrants will expire two years from the date of the closing of the private placement. Certain insiders of the Company, including management and directors, participated in purchasing approximately 50% of the Units sold. The proceeds will be used to fund ongoing technical work and business development activities of NorthseaCo in the United Kingdom. After closing the private placement, NorthseaCo has 16,000,000 common shares issued and outstanding. Excelsior owns 75% of NorthseaCo (on a non-diluted basis) and will hold the shares corporately.
The Board of Directors of NorthseaCo will be comprised of Mr. Gerald Roe, Mr. Donald Copeland, Mr. Hussein Charanek, Dr. David Winter, Mr. Harley Winger, Mr. Richard Grafton and Mr. James Howe. Mr. Roe recently retired from Oilexco Incorporated where he served as Chief Operating Officer. Mr. Copeland is the president of Pangman International Limited, a private investment and consulting company. Mr. Copeland was a former director and Chairman of Oilexco Incorporated. Mr. Charanek is an independent businessman with financial interests in energy and experience in domestic and international capital markets. The remaining board members are representatives of the Excelsior Board.
David Winter has agreed to serve as Director and Chief Executive Officer of NorthseaCo. Mary Kennedy and Robert Bailey will serve as Chief Financial Officer and Chief Operating Officer respectively. Excelsior will manage the initial operations and corporate development of NorthseaCo through a services agreement. The Management team will be augmented with the growth of NorthseaCo.
"We welcome the new Board members to the team and look forward to working with them," said David Winter, President and CEO of the Company. "With their successful North Sea experience, and our extensive international experience and expertise we aim to expand the asset base of NorthseaCo and build a successful international oil company active in the North Sea." He added, "Restructuring the company allows Excelsior to focus on its oil sands development, and gives us the ability to independently and more effectively grow and finance North Sea activities. We plan to initiate a public company strategy for NorthseaCo in the near term."
NorthseaCo will manage and finance the work program in the 100% working interest license P.1500, blocks 16/1a and 16/6c, UKCS. Block 16/1a and 16/6c were awarded to Excelsior in April 2007, and are located within quadrant 16 of the central North Sea, a few kilometers northwest of the West Brae field. A number of leads and prospects have been identified and mapped in Eocene aged and Palaeocene aged sand reservoirs, which are productive in the neighboring West Brae field. The primary prospect lies up dip from a well drilled in 1992, which penetrated a 15 meter thick oil column in the target reservoir sands. An independent evaluation of the prospect by PGL Consultants estimated a range of oil in place of between 50 million and 220 million barrels. NorthseaCo is currently reprocessing just over 300 square kilometers of 3-D seismic data to better image the reservoir sands and to define a drilling location to test the prospect., The asset is situated several kilometers from existing infrastructure with spare capacity.
Stock Option Grant:
The Company is pleased to report the Excelsior Board of Directors approved and issued 1,935,000 stock options to purchase common shares of the Excelsior Energy Limited on June 3, 2008, exercisable at $0.46 per share for a period of five years from the date of grant to directors, management and employees.
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