CALGARY, AB–(Marketwired – December 29, 2016) – Marquee Energy Ltd. (“Marquee” or the “Corporation”) (TSX VENTURE: MQX)
Marquee Energy Ltd. (“Marquee” or the “Corporation”) (TSX VENTURE: MQX) is pleased to announce that it has closed its previously announced private placement of 14,705,883 common shares issued on a “flow through” basis pursuant to the Income Tax Act (Canada) (the “Flow-Through Shares”) at a price of $0.17 per Flow-Through Share for gross proceeds of $2.5 million (the “Offering”). The Offering was led by Acumen Capital Finance Partners Limited (the “Underwriter”) who exercised its option to purchase an additional 1,847,617 Flow-Through Shares at a price of $0.17 per Flow-Through Share, for additional gross proceeds of approximately $314,095. In connection with the Offering, the Underwriter received a fee equal to 5% of the gross proceeds of the Offering.
The gross proceeds from the Offering will be used by Marquee to incur eligible Canadian exploration expenses (“Qualifying Expenditures”) prior to December 31, 2017. Marquee will renounce the Qualifying Expenditures to subscribers of the Flow-Through Shares for the fiscal year ended December 31, 2016.
The Flow-Through Shares issued pursuant to the Offering are subject to a statutory hold period of four months plus one day from the closing of the Offering, in accordance with applicable securities legislation.
The Corporation is pleased to announce that the Corporation’s Board of Directors has approved a capital program of approximately $7.0 million for the first half of 2017. Funding for these plans will be provided by cash on hand and free cashflow.
The program will include the drilling of three horizontal oil wells in addition to re-completing two horizontal wells at Michichi, further delineating an area of strong production results. Details on guidance for 2017 and further capital plans for the year will be forthcoming.
Marquee’s priorities remain focused on maintaining financial flexibility while positioning the Corporation to achieve long-term growth in production, reserves and cash flow per share and overall returns to shareholders.
Marquee is a Calgary based, junior energy company focused on high rate of return light oil development and production. Marquee is committed to growing the company through exploitation of existing opportunities and continued consolidation within its core area at Michichi. Marquee’s shares trade on the TSX Venture Exchange under the trading symbol “MQX”. Additional information about Marquee may be found on its website www.marquee-energy.com and in its continuous disclosure documents filed with Canadian securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.