Angle Energy has closed its recently announced bought deal financing of 6,080,000 common shares at $7.70 per Common Share for aggregate gross proceeds of approximately $46.8 million which included the exercise in full of the over-allotment option of 780,000 Common Shares. The syndicate of underwriters was led by FirstEnergy Capital Corp. and included Cormark Securities Inc., Dundee Securities Company, BMO Capital Markets, Peters & Co. Limited and Wellington West Capital Markets Inc.
The net proceeds from the Offering will be used primarily by the Company to fund an acceleration of its oil focused drilling program in 2010 in the Lone Pine Creek area on the newly discovered Wabamun oil pool (additional 3 wells minimum), the Ferrier area in the Cardium play (additional 2-3 wells), and the Harmattan area in the Viking and Cardium plays (additional 3-4 wells) for an estimated $35 million in aggregate, and the excess will be expended for Crown land purchases, ongoing capital expenditures and for general corporate purposes.
The average production guidance for the year remains at 9,300 to 9,500 boe/d due to on-stream timing for new well production and the Strachan gas plant turnaround scheduled to occur at Ferrier in the second quarter. As a result of successful first quarter drilling activities, however, Angle is increasing its exit rate production guidance from over 10,000 boe/d to over 11,000 boe/d by December 31, 2010.
Due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of expenditures and other opportunities which may become available to the Company. Potential investors are cautioned that notwithstanding the Company's current intentions regarding the use of the net proceeds of the Offering, there may be circumstances where a reallocation of funds may be necessary. While the Company anticipates that it will spend the funds available to it as set forth above, there may be circumstances where, for sound business reasons, a reallocation of the net proceeds may be necessary, depending on future operations on the Company's properties or unforeseen events.
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