Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

March 21, 2011 08:30 ET

Open Range Energy Corp. Announces Closing of Bought-Deal Financing and Exercise of Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - March 21, 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 closed its previously announced bought-deal prospectus financing (the "Offering"). Pursuant to the Offering, the Company has issued a total of 7,025,000 Common Shares (the "Common Shares"). All of the Common Shares were issued at a price of $2.85 per Common Share for gross proceeds of $20,021,250. The syndicate of underwriters was led by National Bank Financial Inc. and included Cormark Securities Inc., FirstEnergy Capital Corp., Stifel Nicolaus Canada Inc., Canaccord Genuity Corp., GMP Securities L.P. and Haywood Securities Inc. (collectively, the "Underwriters"). The Underwriters exercised the over-allotment option in full with respect to the Offering.

The Company intends to use the net proceeds of the Offering to reduce bank indebtedness to free up borrowing capacity, which will be used by the Company to accelerate its 2011 horizontal drilling opportunities at its core area at Ansell/Sundance.

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

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 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 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
    www.openrangeenergy.com