CALGARY, Dec. 23, 2016 /CNW/ – Trident Exploration Corp. (“Trident” or the “Company”) is pleased to announce that it has closed an equity offering and property acquisition.
In a rights offering that was backstopped by the Company’s major shareholder, Trident issued approximately 59.3 million shares at a price of $0.3793 per share for gross cash proceeds of $22.5 million. The fee for the backstop was paid in shares and represented 5% of the issue or approximately 3.0 million shares. After closing the equity issue, Trident’s issued and outstanding common shares amounts to approximately 208.7 million shares.
Proceeds of the equity issue were used to acquire certain properties from one of Trident’s most significant partners in its Horseshoe Canyon operating area. The acquisition, also priced at $22.5 million, included petroleum and natural gas production rights with working interests averaging 73% in 315,000 acres, just under 20 million cubic feet per day of natural gas production and over 300 barrels per day of oil and natural gas liquids. Proved developed producing reserves acquired are estimated at over 75 billion cubic feet equivalent with additional development available. Through the transaction, Trident increased its working interest ownership in 900 of the 1,400 wells acquired and obtained facility and infrastructure ownership to natural gas sales lines and oil and natural gas liquids handling facilities throughout.
Post-transaction, Trident’s production level sits at approximately 80 million cubic feet per day equivalent with a 96% natural gas weighting.