Rock Energy Inc.

Rock Energy Inc.

October 08, 2009 07:39 ET

Rock Energy Announces $15 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2009) -


Rock Energy Inc. (TSX:RE) ("Rock" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Wellington West Capital Markets Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 4,350,000 common shares ("Common Shares") at a price of $3.50 (the "Issue Price") per Common Share for gross proceeds of $15,225,000 (the "Offering"). The Company has also granted the Underwriters an option, exercisable in whole or in part, for a period commencing on the closing of the Offering and ending 30 days after the closing date, to purchase up to an additional 650,000 Common Shares at the Issue Price for additional gross proceeds of up to $2,275,000.

Proceeds from the Offering will be used to fund the Company's ongoing capital expenditure program and for general corporate purposes.

The Common Shares shall be offering in all provinces of Canada, other than the province of Quebec, by way of a short form prospectus, and in other jurisdictions pursuant to applicable exemptions from registration and prospectus requirements. Closing of the Offering is scheduled to occur on October 29, 2009, and is subject to certain conditions including the approval of the Toronto Stock Exchange and the receipt of necessary regulatory approvals.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Rock in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

Certain statements and information contained in this press release contain forward-looking statements, including statements concerning the anticipated closing date of the Offering and the anticipated amount and use of proceeds. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Rock's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements.

Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. The closing of the Offering could be delayed if the Company is not able to obtain necessary approvals on the expected timelines, or not completed at all if any condition to closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all.

These statements speak only as of the date of this press release. Rock does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

For further information please visit our website at

Contact Information

  • Rock Energy Inc.
    Allen Bey
    President & CEO
    (403) 218-4380
    Rock Energy Inc.
    John H. Van de Pol
    Vice President, Finance & CFO
    (403) 218-4380