Rock Energy Inc.
TSX : RE

Rock Energy Inc.

February 25, 2015 09:07 ET

Rock Energy Inc. Announces the Closing of $13.2 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwired - Feb. 25, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Rock Energy Inc. ("Rock" or the "Company") (TSX:RE) is pleased to announce that it has closed its previously announced bought deal financing. A total of 5,600,000 common shares of Rock ("Common Shares") have been issued at a price of $2.35 per Common Share for gross proceeds of $13,160,000.

The underwriters have the option to purchase up to an additional 840,000 Common Shares at a price of $2.35 per Common Share to cover over-allotments, if any, and for market stabilization purposes, exercisable in whole or in part at any time until March 27, 2015.

The syndicate of underwriters was led by Dundee Securities Ltd. and included Acumen Capital Finance Partners Limited, AltaCorp Capital Inc., FirstEnergy Capital Corp., Haywood Securities Inc., National Bank Financial Inc., Paradigm Capital Inc. and GMP Securities L.P.

The net proceeds from the financing will be initially used to temporarily reduce indebtedness, partially finance the Company's 2015 capital expenditure program and for general corporate purposes.

This financing, combined with the reduction in our capital program announced on January 26, 2015 has placed Rock on a solid foundation. As the Company moves forward, we are focused on maximizing our cash flow net back through reductions in costs and royalties.

Rock is a Calgary-based crude oil exploration, development and production company.

Advisory Regarding Forward-Looking Information and Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information.

The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Rock, including the timing of regulatory approvals, prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory and other required approvals. Although Rock believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Rock can give no assurance that they will prove to be correct. There is no certainty that Rock will achieve commercially viable production from its undeveloped lands and prospects.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and natural gas industry in general, such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Rock are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Rock undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The common shares offered under this offering have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws. This news release shall not constitute an offer to sell or the solicitation of any 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.

For further information please visit Rock's website at www.rockenergy.ca.

Contact Information

  • Rock Energy Inc.
    Allen J. Bey
    President and Chief Executive Officer
    403.218.4380

    Rock Energy Inc.
    Todd Hirtle
    Vice President, Finance and Chief Financial Officer
    403.218.4380
    www.rockenergy.ca