Board Committees
TSX VENTURE SYMBOL: ONR - | View Quote | View Chart | View Financials |
CALGARY, ALBERTA--(Marketwire - Oct. 23, 2008) - Open Range Energy Corp. ("Open Range" or the "Corporation") would like to announce that the Toronto Stock Exchange (TSX:ONR) has accepted its Notice of Intention to commence a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Open Range considers appropriate, up to a maximum of 1,366,662 Common Shares of the Corporation. The maximum number of Common shares to be purchased pursuant to the Bid represents 5% of the issued and outstanding Common Shares of the Corporation as of the date hereof, being 27,334,241 Common Shares. Purchases of Common Shares pursuant to the Bid will be made on the open market through the facilities of the TSX. The price which Open Range will pay for any Common Shares purchased will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. The actual Common Shares that may be purchased for cancellation and the timing of such purchases will be determined by Open Range, subject to a maximum daily purchase limitation of 30,186 Common Shares which equates to 25% of Open Range's average daily trading volume for the six months ended September 30, 2008.
The Bid will commence on October 28, 2008 and will end on October 27, 2009 or such earlier time as the Bid is completed or terminated at the option of the Corporation. Cormark Securities Inc. has agreed to act on Open Range's behalf to make purchases of Common Shares pursuant to the Bid.
Management of Open Range believes that, from time to time, the market price of its Common Shares may not fully reflect the underlying value of the Common Shares and that at such times the purchase of Common Shares would be in the best interests of Open Range and its shareholders. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders of Open Range.
Open Range is also pleased to announce that as a result of a recently completed semi-annual credit facility review with a Canadian chartered bank, the Corporation's credit facilities have increased by 35 percent from $40 million to $54 million. Based on this latest increase, Open Range now has a $50 million extendable revolving credit facility and a $4 million non-revolving acquisition/development demand facility. The facilities are borrowing based facilities that are determined based on, among other things, the Corporation's oil and natural gas reserves, production and operating results, current and forecast commodity prices and current economic and credit conditions. The Corporation currently has approximately $15.6 million drawn against these facilities, which represents 29 percent of its total available bank lines. The next scheduled facility review will occur in April 2009.
OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY WITH FOCUSED OPERATIONS IN THE DEEP BASIN REGION OF ALBERTA.
OPEN RANGE HAS APPROXIMATELY 27.3 MILLION COMMON SHARES ISSUED AND OUTSTANDING WHICH TRADE ON THE TSX UNDER THE SYMBOL "ONR".
Reader Advisory
This news release contains certain forward-looking statements, which include assumptions with respect to purchases of common shares. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, 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, what benefits, including the amount of proceeds, Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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
or
Open Range Energy Corp.
Lyle D. Michaluk, CA
Vice President, Finance and Chief Financial Officer
(403) 262-9280
Website: www.openrangeenergy.com
