Waldron Energy Corporation
TSX : WDN

Waldron Energy Corporation

December 07, 2010 08:52 ET

Waldron Announces Closing of Financing and Closing of Undeveloped Acreage Sale

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

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Waldron Energy Corporation (TSX:WDN) ("Waldron" or the "Corporation") is pleased to announce it has closed the previously announced $5.0 million bought deal financing (the "Offering") of common shares ("Common Shares") issued on a flow-through basis. Additionally, the Corporation closed the previously announced sale of non-core undeveloped P&NG Viking rights for proceeds of $5.5 million.

Financing

Pursuant to the Offering, on December 7, 2010, Waldron issued 1,725,000 Common Shares at a price of $2.90 per Common Share issued on a flow-through basis for gross proceeds of $5.0 million through a syndicate of underwriters led by National Bank Financial Inc. and including Acumen Capital Partners, Desjardins Securities Inc., FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd. and Raymond James Ltd. The financing will provide the Corporation with additional capital for drilling in its core areas targeting Ellerslie, Glauconite and Belly River prospects. 

Waldron now has 30,345,478 Common Shares issued and outstanding (39,923,038 fully diluted).

Sale of Undeveloped Acreage

On December 2, 2010, the Corporation closed the sale of nine net sections of non-core undeveloped P&NG Viking rights in the Crystal area for proceeds of $5.5 million. Proceeds from the sale of these lands will be used to reduce bank indebtedness and/or increase capital programs. The Corporation did not have any production from, or reserves assigned to, the mineral rights being sold.

Investor Information

Waldron is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the Toronto Stock Exchange under the trading symbol "WDN." Additional information regarding Waldron is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.waldronenergy.ca.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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