Pacific Stratus Announces $125M Financing
Pacific Stratus Energy Ltd. has entered into an agreement with a syndicate of investment dealers that has agreed to purchase, subject to the terms of the underwriting agreement, 12.5 million common shares of Pacific Stratus at a purchase price of $10.00 per share, for aggregate gross proceeds in the amount of $125 million. The syndicate is led by GMP Securities L.P. and includes Cormark Securities Inc., Westwind Partners Inc., Orion Securities Inc., Wellington West Capital Markets Inc., and Fraser Mackenzie Limited (the "Underwriters").
Pacific Stratus plans to use the net proceeds of this financing for the repayment of its 13% senior unsecured notes, completion of the 2007 drilling program at La Creciente, the construction of the La Creciente production facilities and gas pipeline, the development of Moriche and the construction of production facilities, the technical evaluation of new blocks in the Llanos Basin, and for general corporate purposes.
The company has granted to the Underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the offering, to purchase up to an additional 1.875 million common shares at the offering price. If the option is fully exercised, the total gross proceeds of the financing will be $143.75 million. The common shares to be issued under the offering will be offered by way of a short form prospectus in all the provinces of Canada, other than Quebec, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The offering is scheduled to close on or about April 19, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
The preliminary short form prospectus in respect of the financing was previously filed on March 16, 2007.
Pacific Stratus Energy is a Canadian-based oil and gas company that
initiated operations in 2004. The company is focused on identifying attractive
opportunities primarily within the upstream Sub Andean basins. Pacific Stratus
has a current net production of 2,200 barrels of oil per day, with working
interests in the Caguan, Dindal, Rio Seco, Puli B, Doima (currently under
dispute), La Creciente, Moriche and Guama blocks in Colombia. The company has
offices in Toronto, Caracas and Bogota.
- Petro Rubiales Completes Acquisition of Pacific Stratus (Jan 23)
- Petro Rubiales and Pacific Stratus Amend Share Exchange Ratio (Jan 15)
- Pacific Stratus Discovers Gas in La Creciente Block, Colombia (Jan 03)