CALGARY, ALBERTA–(Marketwired – Oct. 12, 2016) – Cequence Energy Ltd. (“Cequence”) (TSX:CQE) is pleased to announce that, in connection with its previously announced private placement financing, Cequence and the syndicate of agents led by Peters & Co. Limited have agreed to increase the size of the “commercially reasonable efforts” agency private placement financing. Cequence will now issue up to 34,500,000 common shares on a “flow through” basis pursuant to the Income Tax Act (Canada) at a price of $0.29 per share for aggregate gross proceeds of up to $10 million.
The gross proceeds from the private placement will be used by Cequence to incur eligible Canadian development expenses (as defined in the Income Tax Act (Canada)) on or before December 31, 2016. Cequence intends to drill wells offsetting its recent strong 16-33-61-27W5 Montney well in West Simonette. Management characterizes the Western Simonette area with high gas rates, field condensate rates greater than 35 bbl/mmcf and higher netbacks. The purchasers of shares will be entitled to renunciations from Cequence of Canadian development expenses in an amount equal to the subscription amount effective December 31, 2016.
The private placement is expected to close on or about October 28, 2016.
The private placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The shares issued pursuant to the private placement will be subject to a statutory hold period of four months plus one day from the date of completion of the private placement, in accordance with applicable securities legislation.
Cequence is a publicly traded Canadian energy company involved in the acquisition, exploitation, exploration, development and production of natural gas and crude oil in western Canada. Further information about Cequence may be found in its continuous disclosure documents filed with Canadian securities regulators at www.sedar.com.