Ridgeway Announces Private Placement
Ridgeway Petroleum Corp. on Thursday announced a non-brokered private placement of up to 2,500,000 units at $2.00 per unit for aggregate proceeds of up to $5 million.
Each unit comprises one share of the Company and one half of one whole non-transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one share of the Company at a price of $3.00 per share for one year from the date of the closing of the private placement. The Company may pay finder's fees in the form of cash, shares, warrants or a combination thereof in connection with the private placement. The private placement, including payment of the finder's fees, is subject to regulatory approval.
The proceeds of the private placement are intended to be used for ongoing drilling operations on the Company's St Johns Helium/CO2 Project, potential oilfield acquisitions and for general working capital.
Ridgeway Petroleum is a development stage, enhanced oil recovery (EOR), company that controls approximately 200,000 acres of land within the St Johns Helium/CO2 field in Arizona and New Mexico where the Company is developing what is thought to be the largest undeveloped resource of helium and carbon dioxide gases in North America. Independent engineering firms have estimated that the St Johns field contains approximately 15 trillion cubic feet of in place resources, with a potential recoverable resource of 5 trillion cubic feet. Development of the project could result in the Company becoming one of North America's largest CO2 suppliers and EOR producers. The Company's strategic focus for CO2 delivery and EOR production is the Permian Basin where significant potential exists for enhanced oil recovery from mature, depleted oil fields.