Triton Energy Corp.

Triton Energy Corp.

February 22, 2010 13:04 ET

Triton Energy Corp. Announces Closing of the West Central Alberta Property Acquisition and $25 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Feb. 22, 2010) - Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) is pleased to announce that it has closed the acquisition of approximately 1,100 boepd in west central Alberta for consideration of approximately $45 million (the "Acquisition") prior to normal adjustments, closed the previously announced $25 million bought deal financing (the "Offering") of common shares ("Common Shares"), increased its credit facilities (the "Credit Facilities") to $25 million and closed the previously announced rights offering.


The acquired properties are currently producing approximately 1,100 boepd (65% liquids rich natural gas, 35% light oil), are located in the Ferrybank area of West Central Alberta and increase Triton's inventory of high quality repeatable drilling prospects. The Acquisition increases Triton's exposure to the liquids rich natural gas Glauconite Formation on the Hoadley trend, an area where industry players have experienced considerable success with horizontal drilling, and it also provides Triton with multiple Ellerslie and Belly River light oil drilling locations. The Acquisition is also generally characterized by high working interests (approximately 70%), operatorship, 2D & 3D seismic coverage and control of infrastructure, all attributes that provide Triton with significant exposure to the potential benefits and upside of these plays. These properties also contain gathering and processing infrastructure capable of accommodating future production additions. The Corporation has funded the Acquisition through the previously announced Offering and Credit Facilities.


Pursuant to the Offering, Triton issued 104,170,000 Common Shares at a price of $0.24 per Common Share for gross proceeds of $25 million through a syndicate of underwriters led by National Bank Financial Inc. and including FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., Desjardins Securities Inc. and Raymond James Ltd. The proceeds of the Offering were used to fund the purchase price of the Acquisition.


In connection with the Acquisition, Triton is pleased to announce that it has arranged new $25 million Credit Facilities. Triton has approximately $18.5 million drawn on the Credit Facilities after completing the Acquisition.


Triton is pleased to announce the completion of its previously announced rights offering. Under the rights offering, shareholders subscribed for and purchased an aggregate of 10,430,487 Common Shares at a price of $0.13 per Common Share resulting in gross proceeds to the Corporation of approximately $1.36 million.


Triton's management team is focused on creating shareholder value through both internal generation of prospects and strategic acquisitions. The Acquisition is consistent with Triton's strategy of acquiring high quality liquids rich natural gas, complemented by light oil, with repeatable drilling opportunities. The Acquisition will also provide Triton with a solid foundation for growth by enhancing its current operations with a multi-year drilling inventory in an area where the management team has extensive experience and success. With the addition of these properties, the management team will be able to exploit its technical expertise, capitalize on its experience and provide value for its shareholders by implementing an aggressive exploration and development program.

Upon completion of the Acquisition, the Corporation expects to have pro forma production of approximately 1,950 boepd of natural gas and light oil, more than 62,300 net acres of undeveloped land and a concentrated asset base in West Central Alberta with a large inventory of development and exploratory drilling locations. The Corporation expects to announce its 2010 capital program within the next few weeks.


Triton is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TEZ".

Additional information regarding Triton is available under the Corporation's profile at

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Forward Looking and Cautionary Statements

This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of future plans and operations, and, more particularly, statements concerning Acquisition and the Credit Facilities.

Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," "plan,," "intend," and similar expressions suggesting future outcomes, and 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 Acquisition and the Credit Facilities; the expected transaction metrics of the Acquisition; the Corporation's anticipated debt following completing of the Acquisition and the Credit Facilities; and anticipated growth and advantages to be gained as a result of the Acquisition. In addition, statements regarding reserves are deemed to be forward-looking statements, as they involve estimates and assumptions as to the expectation that the reserves can be economically exploited in the future. The forward-looking statements are based on various assumptions including expectations regarding the properties acquired further to the Acquisition; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements are subject to a wide range of 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 commodities prices; currency fluctuations; imprecision of reserves 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; 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 Triton believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Triton does not undertake any obligation to publicly update or revise any forward-looking statements.

Note Regarding BOEs

The term barrel of oil equivalent ("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.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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