Canadian Superior Enter $21 Million Flow-Through Share Transaction
Canadian Superior Energy has entered into a transaction with Acumen Capital Finance Partners Limited, Calgary, Alberta, Jennings Capital Inc., Calgary, Alberta and Maison Placements Canada Inc., Toronto, Ontario for the issuance of $21 million of flow-through shares in Canada at a purchase price of $3.50 per share, for a total of 6,000,000 Canadian Superior common Shares.
The private placement is expected to close on or about November 16, 2007, and is subject to receipt of all necessary regulatory approvals and other customary conditions. Canadian Superior plans to use the proceeds of the transaction to ramp up its drilling operations in Western Canada.
Speaking today, Craig McKenzie, Canadian Superior's Chief Executive Officer said, "We believe the Alberta basin is going through a transition, and we plan to take advantage of this situation in 2008. Service costs and drilling activity in Western Canada are declining, and we have excellent exploration potential available to us. We have been approached to issue flow-through shares during the current tax driven period. Accordingly, completing this transaction enables us to ramp up our Western Canadian operations and free up our cash reserve for our first priority of growing our international operations."