Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

March 02, 2011 16:38 ET

Open Range Energy Corp. Announces $18.2 Million Bought-Deal Financing

CALGARY, ALBERTA--(Marketwire - March 2, 2011) -

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.

Open Range Energy Corp. ("Open Range" or the "Company") (TSX:ONR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 6,386,000 common shares ("Common Shares") at a price of $2.85 per Common Share for aggregate gross proceeds of approximately $18.2 million (the "Financing"). In addition, the underwriters have been granted an over-allotment option, exercisable in whole or in part for a period of 30 days following closing of the Financing, to purchase up to an additional 639,000 Common Shares, at a price of $2.85 per share for additional gross proceeds of approximately $1.8 million.

Net proceeds of the offering will be used to continue to focus on the Company's horizontal drilling opportunities at Ansell/Sundance and reduce bank indebtedness.

The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus and in certain jurisdictions outside of Canada, including the United States, on a private placement basis. Closing is expected to occur on or about March 21, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY WITH FOCUSED OPERATIONS IN THE DEEP BASIN REGION OF ALBERTA.

For further information, please refer to the Company's website at www.openrangeenergy.com.

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

Reader Advisory

This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Open Range believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Open Range 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 offering could be delayed if Open Range is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering of the Common Shares by Open Range might change if the board of directors of Open Range determines that it would be in the best interests of Open Range to deploy the proceeds for some other purpose, such as an acquisition.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    403-205-3704
    or
    Open Range Energy Corp.
    Lyle D. Michaluk, CA
    Vice President, Finance and Chief Financial Officer
    403-262-9280