Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

October 13, 2009 11:10 ET

Open Range Energy Corp. Increases Bought-Deal Financing to $65 Million

CALGARY, ALBERTA--(Marketwire - Oct. 13, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Open Range Energy Corp. ("Open Range" or the "Company") (TSX:ONR) is pleased to announce that as part of the bought-deal financing agreement announced on October 13, 2009 with a syndicate of underwriters led by Cormark Securities Inc. and including FirstEnergy Capital Corp., National Bank Financial Inc., Canaccord Capital Corp., Raymond James Ltd., Dundee Securities Corp. and GMP Securities Ltd. the Company has increased the size of the common share subscription receipt ("Subscription Receipts") offering to approximately $58.0 million. Under the agreement, the syndicate will now purchase from Open Range 31,350,000 Subscription Receipts at an issue price of $1.85 per Subscription Receipt and 3,050,000 special warrants to acquire common shares to be issued on a flow-through basis ("Flow-Through Warrants") at an issue price of $2.30 per Flow-Through Warrant for total gross proceeds to Open Range of approximately $65.0 million (the "Offering").

The Subscription Receipt offering and the Flow-Through Warrant offering are expected to close concurrently on or about November 3, 2009, and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including shareholder approval and the approval of the Toronto Stock Exchange.

The proceeds of the Subscription Receipt financing will be used to acquire the position of a working-interest partner in the Company-operated Ansell/Sundance property in west central Alberta (the "Acquisition"). Each Subscription Receipt shall entitle the holder thereof to receive, for no additional consideration and without further action, one common share of the Company, upon satisfaction of the Escrow Release Conditions as detailed in the October 13, 2009 press release.

The gross proceeds received by the Company from the sale of the Flow-Through Warrants will be used to incur eligible Canadian Exploration Expenses ("CEE"), which will be renounced in favour of the holders for the December 31, 2009 taxation year.

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.

Further details of the Offering and the Acquisition are set out in the Company's press release of earlier today.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY WITH FOCUSED OPERATIONS IN THE DEEP BASIN REGION OF ALBERTA.

Reader Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (i) completion of the Acquisition; (ii) completion of a financing; (iii) results to production, reserves, land values and other anticipated benefits of the Acquisition; (iv) future capital expenditures; (v) funds from operations; (vi) cash flow; and (vii) debt levels. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control. Such risks and uncertainties include, without limitation, risks associated with oil and natural 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, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range 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.

THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    403-205-3704
    or
    Open Range Energy Corp.
    Lyle D. Michaluk, CA
    Vice President, Finance and Chief Financial Officer
    403-262-9280
    www.openrangeenergy.com