CALGARY, Oct. 17, 2018 /CNW/ – Cuda Oil and Gas Inc. (“Cuda” or the “Company“) (TSXV:CUDA) announces a Private Placement and Powder River Basin Land Acquisition in Converse and Natrona Counties, Wyoming, USA.
Cuda is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by KES 7 Capital Inc., with co-joint book runners Eight Capital and Cormark Securities Inc. in connection with a commercially reasonable efforts agency private placement of up to 3,278,688 common shares (“Common Shares“) at a price of $3.05 per share (the “Offering Price“) for gross proceeds of up to $10 million (the “Offering“). In addition, the Company has granted the agents an over-allotment option, exercisable for a period of 30 days from closing, to sell additional common shares representing 15% of the base Offering at the Offering Price.
Concurrent with the Offering, the Company may complete a non-brokered private placement of Common Shares to insiders and other investors identified by the Company to be included on a president’s list at a price of $3.05 per Common Share for aggregate gross proceeds of up to $2 million (the “Non-Brokered Offering“).
The Company anticipates using the net proceeds of the Offering for exploration and development activities, acquisitions and for working capital and general corporate purposes. The Offering is expected to close on or about November 6, 2018. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
Cuda also announces that, through its area of mutual interest participation rights in Converse and Natrona Counties Wyoming, it has completed the acquisition of the Cole Creek Unit and surrounding lands. The acquisition is comprised of 11,000 +/- gross acres (3,667 net) and currently produces approximately 50 BOPD. The operator of the unit plans initially to optimize the field operations and increase production through a series of work-overs and re-completions.
Additionally, Cuda successfully participated in a recent Bureau of Land Management (BLM) mineral land sale acquiring 5,045.46 gross acres (1,681.65 net). These are all 10-year leases with a 1/8 (12.5%) royalty. These newly acquired lands are in Converse and Natrona Counties, Wyoming and proximal to the +/-25,000 acre Barron Flats (Deep) federal exploration unit (CUDA 27.75% WI) and the Cole Creek acquisition (CUDA 33.33%WI). The operator of the unit has now blocked up over 42,000 gross (12,500 net to CUDA) acres in the Powder River Basin. Development of the Shannon Sand light sweet oil (400 API) conventional accumulation is ongoing with a 17 gross (4.72 net) vertical well drilling program since acquisition in August 2018. Field optimization is progressing to facilitate the full field development, including a gas handling facility, gas gathering system, compression and field wide electrification to optimize the production and reduce OPEX.
About Cuda Oil and Gas Inc.
Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long term focus on large, light oil resource based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.