CALGARY, ALBERTA–(Marketwired – June 15, 2016) – Cardinal Energy Ltd. (“Cardinal” or the “Company”) (TSX:CJ) is pleased to announce that it has closed its previously announced public offering of 7,150,000 common shares through a syndicate of underwriters led by CIBC Capital Markets, and including FirstEnergy Capital Corp., RBC Capital Markets, National Bank Financial Inc., Scotiabank, GMP Securities L.P., BMO Capital Markets, Macquarie Capital Markets Canada Ltd. and Dundee Securities Ltd. (collectively, the “Underwriters”) at a price of $9.35 per common share for gross proceeds of approximately $67 million (including the over-allotment option).
The net proceeds from the financing will initially be used to repay a portion of outstanding indebtedness under the Company’s credit facilities, and will subsequently be redrawn to partially fund an increased drilling program, additional capital spending for facilities to further reduce operating costs, and to allow Cardinal to be opportunistic with potential acquisition opportunities.
Renewal of Credit Facility
Following the completion of the syndicate’s semi-annual review in May, the credit facilities available to the Company were unchanged at $150 million and the borrowing base was amended to $250 million. At closing and after giving effect to the offering, Cardinal will have approximately $25 million drawn on its credit facilities.
About Cardinal Energy Ltd.
Cardinal is a junior Canadian oil focused company built to provide investors with a stable platform for dividend income and growth. Cardinal’s operations are focused in all season access areas in Alberta.