Marksmen Energy Inc.
TSX VENTURE : MAH
OTCQB : MKSEF

Marksmen Energy Inc.

January 19, 2015 09:00 ET

Marksmen Announces Proposed Private Placement and Impact on Operations

CALGARY, ALBERTA--(Marketwired - Jan. 19, 2015) - Marksmen Energy Inc. (TSX VENTURE:MAH)(OTCQB:MKSEF) ("Marksmen" or the "Company") announces that it plans to complete a non-brokered private placement of up to 8,333,333 units (the "Units") of Marksmen at a price of $0.15 per Unit for aggregate gross proceeds of up to $1,250,000 (the "Offering"). The Units will be comprised of one (1) common share ("Common Share") and one-half of one (1/2) share purchase warrant ("Warrant") of Marksmen. Each whole Warrant entitles the holder thereof to purchase one Common Share for $0.25 expiring two (2) years from the date of the closing of the Offering.

Marksmen may pay a commission or finder's fee to qualified non-related parties of up to 8% of the gross proceeds of the Offering (up to $100,000) and broker warrants (the "Broker Warrants") equal to up to 8% of the number of Units sold in the Offering (up to 666,667). Each Broker Warrant will entitle the holder to acquire one Common Share at a price of $0.15 per Broker Warrant for a period of one (1) year from the date of issuance.

The proceeds of the Offering will be used primarily for the following as well as additional working capital:

1. Tie-in Marksmen's producing wells to water disposal well BJ78 #6: This will enable the Company to run lines and dispose of produced water from wells at: Strittmatter #1, BJ78 #11, BJ78 #10 and BJ78 #8. Currently water is being injected into a disposal well owned and operated by our JV partner and they charge a fee on a per barrel of water basis. Once the disposal well is operational, disposal costs will be reduced significantly and fluid and oil production will be optimized from all four (4) of the Company's oil wells. Additionally, operating costs are expected to stay below $10 per barrel of oil produced. It is expected to take about four to five weeks to complete the work.

2. Upgrade to Progressive Cavity Pumps (PCP): One well, BJ78 #8, has been successfully equipped with a PCP pump. Two other wells at BJ78 #11 and BJ78 #10 will be upgraded to this type of pump to allow a variable range of production from very low up to 750 barrels of fluid per day. This will allow Marksmen to optimize the fluid production and corresponding oil production.

3. 2015 Initial Seismic Program: Marksmen will undertake a 3D seismic program of a minimum of two square miles on lands accumulated in 2014 totaling approximately ten square miles of land. This work will take place in the first quarter of 2015. Additional seismic work is planned in the second quarter.

4. Drilling Operations: During the first quarter of 2015, Marksmen plans to drill, complete and tie-in at least one well on a target(s) selected after reviewing the new 3D Seismic data.

It is expected that insiders of the Company will participate in the Offering.

Completion of the Offering is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange Inc. The Common Shares and Warrants issued will be subject to a four month hold period from the date of the closing of the Offering.

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 news release.

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the use of proceeds, operations and the closing of the private placement including the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen's disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Contact Information

  • Marksmen Energy Inc.
    Archie Nesbitt
    Director and CEO
    (403) 265-7270
    info@marksmen.ca