Ravenwood Energy Corp.

December 22, 2010 15:25 ET

Ravenwood Energy Corp. Closes Strategic Property Acquisitions in Excess of $100,000,000 and Financing in Excess $83,000,000

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2010) - Ravenwood Energy Corporation ("Ravenwood") is pleased to announce that it has successfully completed an acquisition from a senior producer of a high quality, long life liquids rich gas asset in central Alberta (the "Acquisition"). Current production from this acquisition is estimated at approximately 1,500 BOE/d.

David Beckwermert President & CEO of Ravenwood said: "This is the second strategic acquisition we have completed in the same geographic area since October 2010, giving Ravenwood over 2,000 BOE/d of production in this new core area. These assets offer exposure to high quality, long life gas production and reserves, together with exploration targets. We intend to aggressively grow our production in this area through drilling and further acquisitions."

The Acquisition, together with an earlier strategic acquisition by Ravenwood in the same core area of central Alberta, were completed for combined aggregate consideration of approximately $107,000,000.

Concurrent with the Acquisition, Ravenwood closed a non-brokered private placement for 27,110,050 common shares at a price of $2.15 per share for aggregate gross proceeds of $58,286,608 (the "Private Placement"). The Private Placement was placed primarily with an affiliate of Natural Gas Partners ("NGP"). Founded in 1988, NGP is a US$7.2 billion family of investment funds organized to make direct equity investments in private energy enterprises. NGP invests these funds in companies focused on building oil and natural gas asset portfolios as well as oil field service and other energy opportunities where there is a clear match between a management team's growth strategy and NGP's unique capabilities in the investment arena. NGP is recognized by the industry as setting the standard for portfolio company support, providing unparalleled resources and creativity to assist the growth of its portfolio companies. NGP is part of the investment platform of NGP Energy Capital Management, the premier investment franchise in the natural resources industry with US$9.5 billion in cumulative capital under management. 

NGP now owns approximately 60% of the issued and outstanding common shares of Ravenwood. Additionally, NGP has committed a further $25,000,000 in equity upon the same terms as the Private Placement for the next two years. With this commitment, Ravenwood will have rapid access to undrawn equity lines to support further acquisitions in the Corporation's core area of production. 

Ravenwood is a Calgary, Alberta based company engaged in the exploration, development and production of natural gas reserves in western Canada. Ravenwood's strategy is to build shareholder value through a balance of exploration and development drilling complemented by a focused acquisition program.

Where amounts are expressed herein on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This information contains forward-looking statements under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that would cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

Contact Information

  • Ravenwood Energy Corp.
    David Beckwermert
    President & CEO
    (403) 265-1541
    (403) 266-1462 (FAX)
    or
    Ravenwood Energy Corp.
    #2500, 635 - 8th Avenue S.W.
    Calgary AB T2P 3M3