Celtic Exploration Ltd.

Celtic Exploration Ltd.

March 11, 2011 08:09 ET

Celtic Exploration Ltd. Announces $101.5 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - March 11, 2011) -


Celtic Exploration Ltd. ("Celtic" or the "Corporation") (TSX:CLT) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and RBC Capital Markets and including Cormark Securities Inc., GMP Securities L.P., Peters & Co. Limited, CIBC World Markets Inc., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Stifel Financial Corp., Scotia Capital Inc., and TD Securities Inc. (collectively the "Underwriters"), under which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 5,000,000 common shares of Celtic, at a price of $20.30 per common share resulting in gross proceeds of $101,500,000.

Celtic has also granted the Underwriters an option, exercisable for a period commencing at closing of the offering and ending 30 days following closing of the offering, to purchase an additional 750,000 common shares at the same offering price which, if exercised, would increase the total gross proceeds to $116,725,000.

Net proceeds from the offering will initially be used to pay down existing credit facilities, and thereafter to fund ongoing exploration and development activities and for general corporate purposes. This transaction is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares will be offered in all provinces of Canada by way of short form prospectus. Closing is anticipated to occur on or about March 31, 2011.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Advisory Regarding Forward-Looking Statements

The information with respect to Celtic contained herein, contains forward-looking statements, including statements concerning the anticipated closing date and the anticipated use of proceeds of the offering. These forward-looking statements are based on assumptions, including the anticipated receipt of regulatory approvals and are subject to numerous risks and uncertainties, certain of which are beyond Celtic's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency exchange rate fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers, stock market volatility and ability to access sufficient capital. As a result, Celtic's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. Celtic does not intend, and does not assume any obligation, to update or revise these forward-looking statements except as required pursuant to applicable securities laws.

Contact Information

  • Celtic Exploration Ltd.
    David J. Wilson
    President and Chief Executive Officer
    (403) 201-5340
    Celtic Exploration Ltd.
    Sadiq H. Lalani
    Vice President, Finance and Chief Financial Officer
    (403) 215-5310
    Celtic Exploration Ltd.
    Suite 500, 505 - 3rd Street SW
    Calgary, Alberta
    Canada T2P 3E6