CALGARY, ALBERTA–(Marketwired – July 11, 2016) –Rising Star Resources Ltd. (“Rising Star” or the “Company“) is pleased to announce that it has completed its initial financing with Lex Capital and 32 Degrees Capital with a total commitment amount of $25 million. The Company has also completed a non-brokered private placement (“Private Placement“) which together with the initial financing, resulted in total aggregate proceeds of approximately $40 million.
Rising Star is also pleased to announce the acquisition of top-tier conventional, high working interest, large OOIP, operated light oil and gas assets, including associated infrastructure, in the Peace River area of Alberta with June 2016 production of approximately 1,000 boe/d (55% Oil and NGL) plus facility interests and 85,530 net acres of undeveloped land for a purchase price of $30 million (the “Asset Acquisition“).
Rising Star is led by Steve Sugianto, President and Chief Executive Officer, who has over 30 years of experience in the Canadian oil and gas sector, including founding and leading three successful start-up companies that delivered strong shareholder returns (New Star Energy, Galleon Energy and KeyWest Energy). Steve Sugianto was the winner of 2014 Top Emerging Producer for Canada’s Oil and Gas Entrepreneurs awarded by Explorers and Producers of Association of Canada. Rising Star’s management team has a strong, proven track record of creating shareholder value. Rising Star’s Board will consist of Paul Colborne (CEO of Surge Energy Inc.) as Chairman, Craig Lothian and Dean Popil (Lex Capital), Mitch Putnam (32 Degrees Capital) and Steve Sugianto.
“We are very excited about our opportunities,” Steve Sugianto said, “The current cycle of oil prices provides a unique opportunity to build and to create an elite, growth focussed, light oil company with large OOIP and large low risk development drilling inventory that can deliver significant growth at current strip oil prices.”
National Bank Financial acted as financial advisor for the Company in connection with the Asset Acquisition and the Private Placement and Richardson GMP acted as finding agent in connection with the Private Placement.
About Lex Capital and 32 Degrees Capital
Lex Capital and 32 Degrees Capital are private equity firms that invest in high growth, resource opportunities in the Canadian energy sector.