Midway Energy Ltd.
TSX : MEL

Midway Energy Ltd.

November 24, 2009 10:51 ET

Midway Energy Ltd. Announces Closing of Equity Financing and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

Midway Energy Ltd. ("Midway" or the "Company") (TSX:MEL) is pleased to announce that it has closed its previously announced bought-deal financing of 6,320,000 common shares ("Common Shares") at a price of $1.90 per Common Share for gross proceeds of $12,008,000 (the "Offering"). 

The Offering was led by GMP Securities L.P. on behalf of a syndicate of underwriters, including Wellington West Capital Markets Inc., FirstEnergy Capital Corp. and Acumen Capital Finance Partners Limited (the "Underwriters"). The Underwriters also exercised their over-allotment option to purchase an additional 632,000 Common Shares at a price of $1.90 per Common Share, providing the Company with additional gross proceeds of $1,200,800. The Common Shares issued pursuant to the Offering are subject to a customary 4-month hold period. An insider of Midway participated in the Offering and acquired 75,000 Common Shares.

Midway is also pleased to announce that it has closed one of the three recently announced acquisitions. The assets acquired are located in the Garrington area of Alberta and include approximately 65 barrels of oil equivalent per day ("boepd") of light oil and solution gas together with several sections of Cardium lands, which compliment Midway's existing land position. The purchase price for these assets was approximately $4.5 million. The other two acquisitions: a private company with additional offsetting Cardium lands and production; and a Garrington oil battery and truck terminal are expected to close in December, 2009 and January, 2010 respectively. These acquisitions are consistent with Midway's strategy of buying quality base oil production with drillable development upside. All of the lands associated with the acquisitions are contiguous to the Company's existing land base. The acquisitions are expected to increase the Company's current base production by approximately 150 boepd to 1300 boepd and will increase the Company's 2010 guidance to an exit production rate of 2300 to 2400 boepd.

Midway also announces that it has completed drilling its first Cardium horizontal well in Garrington and is currently preparing to complete this well. Midway is on target to drill a total of three Cardium wells in Garrington in the fourth quarter of 2009 and is currently moving a rig to begin drilling its second Cardium horizontal well. 

Forward Looking Statements

This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Specifically, this press release contains forward-looking statements relating to Midway's drilling and completion plans; the completion of the acquisitions referred to herein and the timing of such closings; the satisfaction of closing conditions of the acquisitions; the impact of the acquisitions on Midway's operations, including Midway's anticipated base and exit production levels after giving effect to the acquisitions; and Midway's strategy and future growth and consolidation plans. These forward-looking statements are based on various assumptions including expectations regarding the assets to be acquired; the outlook for petroleum and natural gas prices; estimated amounts, timing and results of capital expenditures; the timing, location and extent of future drilling operations; estimates of future production; assumptions concerning the timing of obtaining regulatory approvals and the satisfaction of other closing conditions of the acquisitions, including completion of due diligence and completion of definitive documentation; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates, Midway's ability to obtain equipment in a timely manner to carry out development activities; impact of increasing competition; ability to market oil and natural gas successfully; and the ability of Midway to access capital. While Midway considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodity prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions in Canada, the U.S. and globally; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Midway believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and the company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Cautionary Statement

The term boe may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Investor Information

Midway is a public oil and gas exploration and development company, located in Calgary, Alberta and carrying out operations in Alberta and British Columbia. Midway currently trades on the Toronto Stock Exchange (TSX) under the Symbol "MEL".

Additional information regarding Midway is available under Midway's profile at www.sedar.com and its website at www.midwayenergy.com.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Midway Energy Ltd.
    M. Scott Ratushny
    Chairman and C.E.O.
    (403) 216-2705
    or
    Midway Energy Ltd.
    Ken E. Frankiw
    President
    (403) 216-2705
    www.midwayenergy.com