Duvernay Oil Corp.
TSX : DDV

Duvernay Oil Corp.

May 06, 2008 08:53 ET

Duvernay Oil Corp. Completes $91,000,000 Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - May 6, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

Duvernay Oil Corp. (TSX:DDV) is pleased to announce that it has closed its previously announced bought deal financing. At closing, Duvernay issued 2,000,000 common shares at a price of $45.50 per share for gross proceeds of $91,000,000. The underwriters syndicate was led by Peters & Co. Limited and included Cormark Securities Inc., Canaccord Capital Corporation, FirstEnergy Capital Corp., Raymond James Ltd., Scotia Capital Inc., BMO Nesbitt Burns Inc., TD Securities Inc., CIBC World Markets Inc. and Thomas Weisel Partners Canada Inc.

The net proceeds of the financing will be used to temporarily reduce bank indebtedness under its credit facility, which will be redrawn and applied to fund an increase in the Corporation's 2008 capital expenditure program, which has been increased from $400 million to $450 million.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

This press release contains certain forward-looking statements, including expectations of future capital expenditures and the use of the proceeds of the financing. These statements are based on Duvernay's current expectations and assumptions that could prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of risks, uncertainties and other factors, such as: changes in the general economic, market, regulatory, industry and business conditions; fluctuations in commodity prices and currency exchange rates; the successful and timely implementation of growth projects; imprecision of reserve estimates; environmental risks; competition from other industry participants; availability of capital; and uncertainties resulting from potential delays or changes in plans, among others. See Duvernay's Annual Information Form and other documents Duvernay files with Canadian securities regulatory authorities for further details, copies of which are available from Duvernay directly or on its website; www.duvernayoil.com or on the SEDAR website www.sedar.com.

Contact Information

  • Duvernay Oil Corp.
    Michael Rose
    President and C.E.O.
    (403) 571-3600
    or
    Duvernay Oil Corp.
    Brian Robinson
    Vice-President, Finance and C.F.O.
    (403) 571-3609
    or
    Duvernay Oil Corp.
    Scott Kirker
    Manager, Corporate Affairs
    (403) 571-3683
    Website: www.duvernayoil.com