Pine Cliff Energy Ltd. (TSXV: PNE) closed its short form prospectus offering of 18.2 million common shares at $1.10 per share.
The company received gorss proceeds of some $20 million. The offering was made pursuant to an underwriting agreement with a syndicate of underwriters. Paradigm Capital Inc. led the syndicate of underwriters Clarus Securities Inc., AltaCorp Capital Inc., FirstEnergy Capital Corp., GMP Securities LP, Haywood Securities Inc., Jennings Capital Inc., and Scotia Capital Inc.
Net proceeds will be used to initially reduce indebtedness under its credit facility and for general corporate purposes. Pine Cliff is a growth oriented oil and gas company that has been actively acquiring material asset positions in the Western Canadian Sedimentary Basin to enlarge its current core areas and create new core areas of production with significant reserves and drilling inventories. It is the intent of Pine Cliff to continue this strategy. The repayment of the outstanding indebtedness under the credit facility with the net proceeds from the offering will enable Pine Cliff to continue to pursue opportunities that it feels fit within this strategy. Pine Cliff thinks that having capital available through borrowings under its credit facility or otherwise to pursue its strategy will permit it to be in a position to act quickly if any such opportunities arise.
Pine Cliff Energy Ltd. is an independent energy company engaged in the exploration, development, and production of natural gas, crude oil, and NGLs primarily in Canada. The company is headquartered in Calgary.