CALGARY, ALBERTA–(Marketwired – Sept. 28, 2017) – Questerre Energy Corporation (“Questerre” or the “Company”) (TSX:QEC)(OSLO:QEC) is pleased to announce that it intends to complete a private placement directed towards Norwegian and international institutional investors (the “Private Placement”).
The Company intends to use the net proceeds from the Private Placement to strengthen its working capital, partially finance its ongoing Montney capital program and the preliminary work for its planned pilot Utica development project in the St. Lawrence Lowlands, Quebec.
The Private Placement will consist of the issuance of up to 34.9 million Common Shares of the Company. The Private Placement will be priced in the context of the market and will be carried out through an accelerated book building process that will close on or before 08:00 (CET) on September 29, 2017. The minimum subscription and allocation is for Common Shares with an aggregate purchase price equivalent to EUR 100,000. Payment for the new shares is expected to be on or about October 5, 2017. The Company with the Managers (defined below) reserves the right to close or extend the application period at any time at their sole discretion. The result of the Private Placement is expected to be announced prior to the start of stock exchange trading on Oslo Børs (“OSE”) on September 29, 2017. The Board of Directors will give due consideration to the issues related to equal treatment of shareholders arising from the Private Placement.
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 Company has filed and the Financial Supervisory Authority of Norway has approved a registration document (a “shelf document”). Approval of the remaining documents necessary to form a full prospectus and facilitate the delivery of tradable Offer Shares on the OSE is expected on or about October 9, 2017.
Arctic Securities AS, Pareto Securities AS and SpareBank 1 Markets AS (together the “Managers”) have been 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 significant 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.