CALGARY, ALBERTA–(Marketwired – Feb. 9, 2016) – Seven Generations Energy Ltd. (TSX:VII) has agreed to issue 18,571,600 common shares at a price of $14.00 per share for gross proceeds of approximately $260 million in a bought deal private placement financing. The proceeds are anticipated to be used for general corporate purposes – primarily 2016 capital investment aimed at growing liquids-rich natural gas production at the Company’s Kakwa River Project. With the issuance of this additional equity, combined with cash on hand and anticipated funds from operations, 7G expects to complete its planned 2016 capital investment of between $900 million and $950 million.
“This new investment will provide additional financial resilience and fortify our balance sheet. We continue to be well funded through 2016 and this additional equity will improve our net debt-to-cash flow ratio during this time of significant commodity price weakness and volatility,” said Chris Law, 7G’s CFO.
“We are continuing to invest in low-cost, economic growth under our revised and flexible 2016 capital investment plan. Our focus remains on prudent, disciplined investment in long-term value creation. If commodity prices show sustainable improvement this year, we have the access to drilling rigs and completions crews to ramp up activity. Conversely, if prices deteriorate, we can further taper and concentrate our capital investment on our most economic developments. Our persistent focus is on innovation, efficiency and value optimization to continue to be among the lowest cost suppliers in North America,” said Pat Carlson, Seven Generations CEO.
This brokered private placement financing is being co-led by Peters & Co. Limited and RBC Capital Markets.
Seven Generations Energy
Seven Generations is a low-cost, high-growth Canadian natural gas developer generating long-life value from its liquids-rich Kakwa River Project, located about 100 kilometres south of its operations headquarters in Grande Prairie, Alberta. 7G’s corporate headquarters are in Calgary and its shares trade on the TSX under the symbol VII.