SkyWest Energy Corp.

SkyWest Energy Corp.

November 17, 2010 19:33 ET

SkyWest Announces $20 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) -


SkyWest Energy Corp. (TSX VENTURE:SKW) ("SkyWest or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of investment dealers led by Wellington West Capital Markets Inc. and including Haywood Securities Inc., FirstEnergy Capital Corp. and Desjardins Securities Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 38,500,000 special warrants ("Special Warrants") of SkyWest at a price of $0.52 per Special Warrant for aggregate gross proceeds of $20,020,000 (the "Offering").

Each Special Warrant will entitle the holder thereof to receive one common share of the Company on the exercise or deemed exercise of the special warrant. The Special Warrants will be exercisable by the holder at any time after the Closing for no additional consideration and all unexercised Special Warrants will be deemed to be exercised on the earlier of (a) four months and a day following the Closing, and (b) that day on which a receipt is issued by the securities regulatory authorities in each of the provinces of Canada, except Quebec, for a final prospectus qualifying the common shares to be issued upon the exercise of the Special Warrants. The Company shall use its reasonable best efforts to obtain such receipt for a final exercise of the Special Warrants dated on or prior to December 31, 2010. Until the receipt is issued for such prospectus, the Special Warrants as well as the common shares issuable upon exercise thereof will be subject to a four month hold period under applicable Canadian securities laws.

SkyWest plans to use the net proceeds from the Offering to fund the proposed acquisitions, as described in the Company's press release dated November 8, 2010, to fund ongoing exploration and development activities and for general corporate purposes.

The Offering is expected to close on or about December 7, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

This Offering replaces the private placement of subscription receipts announced by the Company on November 8, 2010.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

SkyWest Energy Corp. is a Cardium focused exploration and production Company based in Calgary, Alberta, Canada.


This news release contains certain "forward-looking information" within the meaning of such statements under applicable securities law including estimates as to: future production, operations, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, other components of cash flow and earnings, the timeline for the achievement of anticipated exploration, anticipated results from any current or projected drilling program and, subject to regulatory approval and commercial factor. 

Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to, the completion of the transactions contemplated by the Acquisitions, the Financing and the credit facility, the inherent risks involved in the exploration and development of conventional oil and gas properties, and the assets to be acquired pursuant to the Acquisitions, difficulties or delays in start-up and continuing operations, the uncertainties involved in interpreting drilling results and other geological data, fluctuating oil prices, the possibility of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors including unforeseen delays. The Company faces risks including those associated with exploration, development, approvals and the continuing ability to access sufficient capital from external sources if required. Actual timelines associated may vary from those anticipated in this news release and such variations may be material. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates including those relating to the Acquisitions, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. SkyWest undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. 

The reader is cautioned not to place undue reliance on this forward-looking information.


Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 release.

Contact Information

  • SkyWest Energy Corp.
    Lawrence D. Urichuk
    President & CEO
    403-265-0071 ext.201
    SkyWest Energy Corp.
    Joel MacLeod
    Vice President, Finance & CFO
    403-265-0071 ext.203