SkyWest Energy Corp.

SkyWest Energy Corp.

December 07, 2010 13:42 ET

SkyWest Announces First Tranche Closing of Private Placement of Special Warrants

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2010) -


SkyWest Energy Corp. ("SkyWest" or the "Company") (TSX VENTURE:SKW) is pleased to announce that it has closed the first tranche of the previously announced private placement by issuing 57,911,500 common share special warrants ("Special Warrants") at a price of $0.52 per special warrant for gross proceeds of $30,113,980 (the "Offering"), inclusive of the issue of 4,396,500 Special Warrants on partial exercise of the Underwriters' over-allotment option. In the next several days the Company anticipates issuing the remaining Special Warrants available under the over-allotment option to certain directors, officers and employees of the Company and to certain other parties. Wellington West Capital Markets Inc., acted as lead underwriter for the Offering, together with Haywood Securities Inc., FirstEnergy Capital Corp. and Desjardins Securities Inc. 

Each Special Warrant will entitle the holder to acquire one common share without payment of additional consideration at any time on or before April 8, 2011, provided that if SkyWest does not receive a receipt for a prospectus in all filing jurisdictions by December 31, 2010, each Special Warrant will entitle the holder to acquire 1.1 common shares on exercise or deemed exercise thereof.

SkyWest expects to use the net proceeds to fund the PrivateCo Acquisition, as described in the Company's press releases dated November 8, 2010 and December 3, 2010, to fund ongoing exploration and development activities and for general corporate purposes.

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

The securities offered have not been and will not be registered under the United States 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 requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Cautionary Note Regarding Forward-Looking Statements

Statements herein that are not historical facts may be considered forward looking statements including management's assessment of future plans and operations, growth expectations within the Corporation, expected initial production rates from certain new wells, timing of completion of wells and of production additions, expected size of various plays, construction or expansion of facilities and the timing thereof and expected costs and the effects thereof, drilling plans and the effects thereof.

Readers are cautioned that the foregoing list of factors and assumptions is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and SkyWest does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.


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 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