CALGARY, Oct. 28, 2016 /CNW/ – Cequence Energy Ltd. (“Cequence”) (TSX: CQE) is pleased to announce that it has closed its previously announced private placement of 34,500,000 common shares which were issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares”) at a price of $0.29 per Flow-Through Share for aggregate gross proceeds of approximately $10 million. The offering was conducted through a syndicate of agents that was led by Peters & Co. Limited and included AltaCorp Capital Inc., CIBC World Markets, Cormark Securities Inc. and GMP FirstEnergy.
The majority of the purchasers of Flow-Through Shares will be entitled to renunciations from Cequence of Canadian development expenses (“CDE”) in an amount equal to the subscription amount effective December 31, 2016, with the remainder to be effective as of December 31, 2017. The gross proceeds from the offering will be used by Cequence to incur eligible CDE on or before December 31, 2016 or December 31, 2017, as applicable. 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.
About Cequence
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.