Crocotta Energy Inc.

Crocotta Energy Inc.

December 01, 2011 07:53 ET

Crocotta Energy Inc. Announces $25 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2011) -


CROCOTTA ENERGY INC. (TSX:CTA) ("Crocotta" or the "Company") is pleased to announce that it has entered into a letter agreement with GMP Securities L.P. on behalf of itself and a syndicate of underwriters including Canaccord Genuity Corp., Acumen Capital Finance Partners Limited, Haywood Securities Inc., Cormark Securities Inc., Paradigm Capital Inc., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd. (collectively, the "Underwriters") to issue on a "bought deal" basis by way of a short form prospectus, 5,971,000 common shares ("Common Shares") of Crocotta at a price of $3.35 per Common Share for gross proceeds of $20,002,850 and 1,250,000 common shares of Crocotta to be issued on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Common Shares") at a price of $4.00 per Flow-Through Common Share for additional gross proceeds of $5,000,000, for aggregate gross proceeds of $25,002,850 (the "Offering").

Proceeds from the sale of Common Shares under the Offering will be used initially to partially repay debt and then to fund Crocotta's Edson Bluesky and Dawson Montney developments and other projects and for general corporate purposes. Proceeds from the sale of the Flow-Through Common Shares will be used to incur eligible qualifying expenditures to be renounced in favour of purchasers for the 2011 taxation year.

Completion of the Offering is subject to receipt of all necessary regulatory approvals. The Offering is expected to close on or about December 21, 2011.


This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated dates for the closing of the Offering, the expected use of proceeds therefrom, the Company's potential exploration and development opportunities and the anticipated impact of the Offering on the Company's capital budget.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Crocotta, including without limitation: (i) with respect to the anticipated closing date of the Offering, expectations and assumptions concerning timing of receipt of required regulatory approvals and the satisfaction of other conditions to the completion of the Offering, and (ii) with respect to the remaining forward-looking statements, expectations and assumptions concerning the success of future drilling and development activities.

Although Crocotta believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Crocotta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing of the Offering, risks associated with the oil and natural gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations; changes to existing laws and regulations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Crocotta's Annual Information Form which has been filed on SEDAR and can be accessed at The forward-looking statements contained in this document are made as of the date hereof and Crocotta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The securities offered hereunder have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an 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 State in which such offer, solicitation or sale would be unlawful.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Crocotta Energy Inc.
    700, 639 -5th Ave SW
    Calgary, Alberta T2P 0M9

    Crocotta Energy Inc.
    Rob Zakresky
    President and Chief Executive Officer
    (403) 538-3736

    Crocotta Energy Inc.
    Nolan Chicoine
    Vice President, Finance and Chief Financial Officer
    (403) 538-3738