CALGARY, Feb. 9, 2017 /CNW/ – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX,OSE:QEC) is pleased to announce that its private placement of up to 30.8 million Common Shares (the “Private Placement”) has been substantially over-subscribed at a price of 5 NOK or C$0.79 per Common Share. Gross proceeds are estimated at 154 million NOK or approximately C$24 million.
Michael Binnion, President and Chief Executive Officer of Questerre, commented, “The proceeds from this placement further strengthen our financial position. We are fully funded to participate in the ongoing development of our Montney assets at Kakwa this year. We also plan to invest in the early engineering work for our planned pilot program for the Utica in Quebec.”
Closing of the Private Placement is subject to receipt of all requisite approvals, including the approval by the Toronto Stock Exchange. The Common Shares issued are subject to certain resale restrictions in Canada and cannot be traded in Canada or to the benefit of a Canadian resident for four months and a day from the distribution date. The Private Placement is completed in reliance on exemptions from the Prospectus Directive (Directive 2003/71 EC as amended by Directive 2010/73 EU). The Common Shares issued under the Private Placement will be tradeable on the Oslo Stock Exchange from delivery to subscribers.
The Company anticipates there will be 339,103,415 Common Shares issued and outstanding upon closing of the Private Placement.
Pareto Securities AS and Swedbank were appointed as managers and bookrunners in connection with the Private Placement.
Questerre is leveraging its expertise gained through early exposure to shale and other non-conventional reservoirs. The Company has base production and reserves in the tight oil Bakken/Torquay of southeast Saskatchewan. It is bringing on production from its lands in the heart of the high-liquids Montney shale fairway. It is a leader on social license to operate issues for its Utica shale gas discovery in the St. Lawrence Lowlands, Quebec. It is pursuing oil shale projects with the aim of commercially developing these massive resources.
Questerre is a believer that the future success of the oil and gas industry depends on a balance of economics, environment and society. We are committed to being transparent and are respectful that the public must be part of making the important choices for our energy future.