CALGARY, ALBERTA–(Marketwired – Dec. 14, 2016) – Traverse Energy Ltd. (the “Corporation”) (TSX VENTURE:TVL) announces that it has closed its previously announced private placement (the “Private Placement“) of 8 million common shares (“Shares“). The Corporation issued (i) 2.4 million common shares at $0.40 per share (“Common Shares“) and (ii) 5.6 million common shares eligible for the renunciation of Canadian exploration expenses within the meaning of the Income Tax Act (Canada) at $0.46 per share (“Flow-Through Shares“) for total gross proceeds of approximately $3.5 million. These Shares are subject to a hold period under applicable securities law until April 15, 2017.
The Corporation paid an aggregate finder’s fee of $120,729 to two registered brokers in consideration for placing an aggregate of 4,602,500 Shares under the Private Placement. Insiders of the Corporation participated in the Private Placement and purchased an aggregate of 861,300 Shares or 10.7% of the Private Placement.
The Corporation intends to use the proceeds from the Flow-Through Shares to fund a portion of its exploration activities in the province of Alberta and from the issuance of the Common Shares for general corporate purposes.
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation currently are listed on the TSXV under the trading symbol “TVL”. There are currently 86,644,402 Shares issued and outstanding.
During December, Traverse placed one natural gas well on production in the Coyote area. A second gas well will be placed on production in early Q1 2017 once well facilities and a short pipeline are completed. In the Watts area, one oil well and one gas well have been equipped and tied in to third party facilities. Commencement of production is anticipated to begin in January 2017 once the third party pipeline has been recommissioned.
In the Turin area, one oil well and one gas well are being equipped and tied in. Production is anticipated to begin in late December. Two additional wells are being recompleted for gas in new zones and if successful will be placed on production through existing facilities in January 2017.
Three exploratory wells are planned to be drilled in the Watts and Coyote areas in the first quarter of 2017. These wells will be drilled to the Banff formation targeting new oil and gas prospects.