Antler Creek Energy Corp.

February 22, 2010 19:36 ET

Antler Creek Energy Corp.: Private Placement to Fund to Acquisition of South Texas Leases

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2010) - Antler Creek Energy Corp ("Antler Creek" or the "Corporation") (TSX VENTURE:AFE) wished to announce that it is seeking to lease oil and gas mineral rights in Zavala, Dimmitt and Maverick counties located in south Texas. If acquired, the Corporation would pursue the exploration and development of its Eagle Ford resource properties. This resource play has been exploited using horizontal wells and multistage fracturing completion techniques. Lease agreements have not been finalized and would be subject to financing. To finance the mineral rights acquisition, the Corporation has sought regulatory approval to raise up to $2.0M US by way of a private placement which would consist of the sale of units priced at $1.00 US per unit. Each unit shall consist of one (1) common share and one-half (1/2) common share purchase warrant entitling the holder of each full warrant to purchase one (1) common share at the exercise price of $1.10 prior to February 18, 2011 or $1.25 US prior to February 18, 2012. The warrants will not be exerciseable prior to May 30, 2010. The transaction will be non-brokered and sold on a best efforts basis. Antler Creek is prepared to pay a finders' fee to persons who introduce qualified accredited investors of up to 7% cash or equivalent number of shares plus a warrant equivalent to 10% of the shares sold. A finders warrant will entitle the finder to acquire Antler Creek common shares at any time up to 2 years from the date of closing of the financing at an exercise price of $1.00 US per common share. A finder will not be entitled to exercise its warrant prior to May 30, 2010. The Antler Creek units issued will be subject to a 4 month hold period from the date of closing. If regulatory approval is obtained, it is expected that the financing will close prior to March 5, 2010. The Corporation has sought regulatory approval to add a conversion provision to the debenture of Gregory J. Leia (director and officer). Approval is sought to permit the holder of the debenture to convert the indebtedness to common shares at the rate of 1 common share for each $1.00 US of indebtedness if converted prior to the closing of the concurrent financing, 1 common share for every $1.10 US of indebtedness if prior to February 18, 2011 or 1 common share for every $1.25 US of indebtedness if prior to February 18, 2012. The indebtedness is $768,467 Cdn as of January 31, 2010. At the exchange ratio of 0.95, it is assumed that this would result in the issuance of 730,000 common shares. Gregory J. Leia is expected to subscribe for 100,000 units. Mr. Leia presently owns 1,320,301 shares (32.8%).
Assuming the placement is fully subscribed, finders fees are paid on $1,900,000 US in cash and finders warrants of 190,000 are granted, Mr. Leia will own 1,420,301/6,000,000 common shares (23.6%) and will own and have a right to acquire up to 2,454,101 shares on a fully diluted basis (27.1%). Assuming the private placement is fully subscribed the officers and directors will own 1,740,634/6,000,000 shares (29.0%) and directors and an officers as a group will own and have rights to acquire up to 3,324,434/9,033,134 common shares (36.7%).

The Corporation wishes to advise of the death of one of its founding directors, Mr. Joseph Worobec on January 5, 2010. The Corporation wishes to express their condolences to the members of Mr. Worobec's family.

The Corporation is a junior oil and gas exploration company whose focus is to explore for and develop oil and gas assets in high netback oil resource plays using horizontal wells and multistage fracturing completion techniques designed to increase the recovery volumes and rates of recovery beyond conventional recovery methods.



Gus B. Coolidge

Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Antler Creek Energy Corp.
    Gus B. Coolidge
    (403) 265-4122
    (403) 265-4138 (FAX)
    Antler Creek Energy Corp.
    1510, 777 - 8th Avenue S.W.
    Calgary Alberta T2P 3R5