Mystique Energy Announces $3.2 Million Financing
Mystique Energy Inc. (TSX-V: MYS) intends to offer for sale, up to 7.5 million flow-through common shares at $0.43 per share, by way of a private placement, for gross proceeds of $3.225 million. Mystique will renounce Canadian Exploration Expenses to subscribers who will be entitled to claim deductions for income tax purposes in the 2006 taxation year equal to 100% of their subscription amount. The private placement will be offered on a best efforts basis by Acumen Capital Finance Partners Limited. Acumen has an option exercisable prior to closing, to increase the size of the financing by a further 2.5 million flow-through shares for additional gross proceeds of $1.075 million. Closing of the financing is expected to occur on or about July 13, 2006 and is subject to the normal regulatory approvals.
Proceeds of the financing will be used to fund Mystique's continuing drilling program on its farm-in lands in the Harmattan/Lochend/Bottrell/Wildcat Hills areas which are located northwest of Calgary. Mystique is planning to drill 22 wells during 2006 with the drilling rig that it presently has under contract, and a second rig that is expected to be contracted to start drilling in late July. Presently, the fifth well of the 2006 program is being drilled; the first four wells have been cased. Of these four wells, one is on production and the other three are being completed. Prior to the 2006 program, from late 2004 to the end of 2005, Mystique has drilled nine successful wells in these areas, six of which are on production, one is waiting on a flowline tie-in and two are waiting on completion/recompletion operations.
Based in Calgary, Mystique is a growing company engaged in the exploration and exploitation of petroleum reserves in western Canada.
- Mystique Announces Quarterly Results (Aug 18)
- Mystique Energy Announces $3.2 Million Financing (Jun 26)
- Mystique Enters Deal for Lochend/Wildcat Hills Prospect (Feb 24)