Board Committees
TSX VENTURE SYMBOL: ONR - | View Quote | View Chart | View Financials |
CALGARY, ALBERTA--(CCNMatthews - April 27, 2006) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Open Range Energy Corp. ("Open Range" or the "Company") (TSX:ONR) announces today that it has entered into a flow-through common share private placement financing agreement, on a "bought deal" basis, with a syndicate of underwriters led by GMP Securities L.P. and including Sprott Securities Inc., Tristone Capital Inc., Acumen Capital Finance Partners Limited and Haywood Securities Inc. Open Range will issue 1,000,000 flow-through common shares at a price of $5.70 per flow-through common share for gross proceeds of $5.7 million. The private placement is expected to close on or about May 16, 2006, and is subject to receipt of all necessary regulatory approvals and completion of definitive documentation.
Proceeds of the flow-through common share offering will be used to expand the Company's 2006 capital investment program to $30 million. This capital investment increase reflects the success of both the drilling program and land capture strategy at the Company's Alberta Deep Basin natural gas property at Ansell/Sundance. Open Range is also pleased to announce that it has signed a contract with Nabors Drilling for a triple drilling rig, which will be utilized at the Company's Ansell/Sundance property.
OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.
Reader Advisory
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
Open Range Energy Corp.
A. Scott Dawson, P.Eng.
President and Chief Executive Officer
(403) 205-3704
Website: www.openrangeenergy.com
