Ridgeway Petroleum Completes Financing
The Board of Directors of Ridgeway Petroleum Corp. on Friday announced the closing of a non-brokered private placement for gross proceeds of $9,213,248 consisting of 17,061,571 Units (less $646,969 consisting of 1,198,090 Units purchased by Pro Group members and Insiders of the Company, which the Company has conditionally closed subject to additional filings with regard to such 1,198,090 Units).
The placement was comprised of Units priced at $0.54 per unit. Each Unit consists of one share of the Company and one non-transferable share purchase warrant entitling the holder to purchase one additional share of the Company for every warrant held at a price of $1.00 until January 19, 2008. Finder's fees totaling $639,998 cash, 28,000 Units and 125,371 shares were paid. All securities issued in the private placement are subject to hold periods expiring May 20, 2007.
Proceeds from this placement have been used to pay and discharge an outstanding Note due, to initiate the 2007 winter drilling program and for general corporate purposes.
The Company also said that a United Drilling, Inc.-operated drilling rig is on location at St Johns and is preparing to start drilling operations on the first of up to 12 wells to be drilled in the 2007 Drilling program. This 2007 drilling program is the largest continuous drilling and testing program to be conducted at St Johns since the discovery well in 1994 and is designed to prove up additional Helium and CO2 reserves and, at the same time, enable the Company to better understand the productive capabilities of the Field. As previously disclosed the Ridgeway owned drilling rig is in Odessa, Texas and is expected to join the United rig in the field within the next 30 days.
The Company also announced the grant of 600,000 incentive stock options entitling the purchase, for a period of five years, of 600,000 shares of the company at a price of $0.59 per share pursuant to the terms of the Company's Stock Option Plan approved by shareholders on June 14, 2006.
Ridgeway Petroleum is a development-stage company that controls approximately 200,000 acres of land in Arizona and New Mexico where the Company has identified a significant resource of helium and carbon dioxide gases. Development of the project could lead the Company to potentially becoming one of North America's largest suppliers of these gases to Industry.