CALGARY, ALBERTA--(Marketwired - Jan. 31, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Forent Energy Ltd. (TSX VENTURE:FEN) ("Forent" or the "Company") is pleased to report that it has raised $1.1 million through two previously announced non-brokered private placements of flow-through common shares (the "Flow-Through Shares") and common shares by way of closes on December 31, 2013 and January 29, 2014.
Forent closed on gross proceeds of $485,000, consisting of $124,000 from the issuance of Flow-Through Shares at $0.10 per share and $361,000 from the issuance of common shares at $0.08 per share. This closing, combined with the closing on December 31, 2013, provides gross proceeds of $1,090,000 to the Company. The Company intends to complete a second tranche closing on its common share offering next week.
The proceeds from the private placements will be used to fund crude oil development expenditures, which will qualify as renounceable exploration expenses, on the central Alberta properties that were acquired in October 2013 and general and administrative expenses of the Corporation. The common shares issued pursuant to the private placements have a four month hold period from the date of issue and remain subject to the final approval of the TSX Venture Exchange.
Forent has approximately 187,318,215 common shares issued and outstanding which trade on the TSX Venture Exchange under the symbol "FEN".
ADVISORY: Certain information in this news release, including the anticipated closing of the Private Placement, the use of the proceeds to incur Canadian Exploration Expenses, and the drilling of wells at the Company's Wayne, Twinning and Montgomery properties, constitute forward-looking statements under applicable securities laws. Although Forent believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Forent 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. The closing of the Private Placement could be delayed if Forent is not able to obtain the necessary stock exchange approval on the timeline it has planned. The Private Placement will not be completed at all if this approval is not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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.