CALGARY, ALBERTA--(Marketwired - Dec. 14, 2016) - Traverse Energy Ltd. (the "Corporation") (TSX VENTURE:TVL) announces that it has closed its previously announced private placement (the "Private Placement") of 8 million common shares ("Shares"). The Corporation issued (i) 2.4 million common shares at $0.40 per share ("Common Shares") and (ii) 5.6 million common shares eligible for the renunciation of Canadian exploration expenses within the meaning of the Income Tax Act (Canada) at $0.46 per share ("Flow-Through Shares") for total gross proceeds of approximately $3.5 million. These Shares are subject to a hold period under applicable securities law until April 15, 2017.
The Corporation paid an aggregate finder's fee of $120,729 to two registered brokers in consideration for placing an aggregate of 4,602,500 Shares under the Private Placement. Insiders of the Corporation participated in the Private Placement and purchased an aggregate of 861,300 Shares or 10.7% of the Private Placement.
The Corporation intends to use the proceeds from the Flow-Through Shares to fund a portion of its exploration activities in the province of Alberta and from the issuance of the Common Shares for general corporate purposes.
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation currently are listed on the TSXV under the trading symbol "TVL". There are currently 86,644,402 Shares issued and outstanding.
During December, Traverse placed one natural gas well on production in the Coyote area. A second gas well will be placed on production in early Q1 2017 once well facilities and a short pipeline are completed. In the Watts area, one oil well and one gas well have been equipped and tied in to third party facilities. Commencement of production is anticipated to begin in January 2017 once the third party pipeline has been recommissioned.
In the Turin area, one oil well and one gas well are being equipped and tied in. Production is anticipated to begin in late December. Two additional wells are being recompleted for gas in new zones and if successful will be placed on production through existing facilities in January 2017.
Three exploratory wells are planned to be drilled in the Watts and Coyote areas in the first quarter of 2017. These wells will be drilled to the Banff formation targeting new oil and gas prospects.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the commencement of production from existing wells in the Coyote, Watts and Turin areas; exploratory drilling plans for the first quarter of 2017 and the use of proceeds from the Private Placement. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include adverse weather conditions, the inability to contract services to complete the intended drilling and completion activities and delays associated with third party facility usage. Although the Corporation believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of the content of this release.