Painted Pony Petroleum Ltd. (TO: PPY.TO) closed a private placement of about 4.2 million common shares priced at $12 each, the company said Aug. 25.

AltaGas Ltd. subscribed to the 4.2 million shares as part of a “strategic alliance” between the two companies, which was announced Aug. 19, Painted Pony added.

There was $50 million in total proceeds, the company noted. The proceeds will support Painted Pony’s 2015 capital program, which will fund the Montney project, the company said. It will also support the alliance’s facilities planning, the company added.

After the private placement closed, Painted Pony had about 94 million outstanding common shares, the company noted.

Calgary, Alberta-based Painted Pony Petroleum Ltd. operates in British Columbia’s Montney Formation.