North Peace Completes $26MM Private Placement
North Peace Energy Corp. has completed its previously announced private placement offering. The Company is issuing a total of 13,333,300 units, at a price of $1.50 per Unit and 3,636,360 flow-through common shares, at a price of $1.65 per Flow-Through Share for gross proceeds of approximately $26 million. Each Unit consists of one common share and half of one common share purchase warrant.
Each full warrant will entitle the holder to acquire one common share at an exercise price of $2.00 per share until February 7, 2010. The offering was placed on a "best efforts" basis by a syndicate of agents led by GMP
Securities L.P. and including TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corporation and Raymond James Ltd.
The proceeds from the offering will be used by the Company to fully fund all costs associated with its CSS pilot project including the acquisition of capital equipment, construction costs and the drilling of two horizontal CSS
wells. The remaining funds will be used to: (i) complete the 2008/2009 winter delineation drilling program, (ii) to advance engineering and environmental baseline work for the commercial CSS project, and (iii) for general corporate purposes.
In mid-2009, following pilot production and the completion of the delineation program, North Peace expects to be in a position to submit an application to the Energy Resources Conservation Board ("ERCB") for the first
10,000 bbl/d phase of a commercial project.
All of the securities issued by North Peace pursuant to the private placement are subject to a four month hold period under Canadian securities laws.
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