Wild Stream Exploration Inc.
TSX VENTURE : WSX

May 17, 2011 09:19 ET

Wild Stream Exploration Inc. Announces Closing of $89 Million Bought Deal Subscription Receipt Financing and Also Announces Increase to Its Credit Facility

CALGARY, ALBERTA--(Marketwire - May 17, 2011) -

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Further to its news release of April 25, 2011, Wild Stream Exploration Inc. ("Wild Stream" or the "Company") (TSX VENTURE:WSX) is pleased to announce that it has entered into a definitive agreement to acquire focused, high working interest, operated producing oil and gas assets (the "Property Acquisition") in southwest Saskatchewan from a senior energy producer. The acquisition will add material reserves, production and undeveloped land in our core Shaunavon and Dodsland resource oil plays.

Closing of the Property Acquisition is subject to customary conditions and regulatory approvals, including the final approval of the TSX Venture Exchange (the "TSXV").

EQUITY FINANCING

To fund the Property Acquisition, Wild Stream has completed its previously announced bought deal financing, through a syndicate of underwriters, led by National Bank Financial Inc. and including Peters & Co. Limited, FirstEnergy Capital Corp., Paradigm Capital Inc., CIBC World Markets Inc., GMP Securities L.P., Scotia Capital Inc. and Desjardins Securities Inc. (collectively, the "Underwriters"), pursuant to which the Company has issued 7,700,000 subscription receipts of Wild Stream ("Subscription Receipts") at price of $11.55 per Subscription Receipt for gross proceeds of approximately $88.9 million (the "Financing"). In addition, the Underwriters have been granted an over-allotment option, exercisable for a period of 30 days following closing of the Financing, to purchase a further 770,000 Subscription Receipts, at a price of $11.55 per Subscription Receipt, for additional gross proceeds of approximately $8.9 million.

The entire gross proceeds of the Financing (the "Escrowed Funds") will be held in escrow pending completion of the Property Acquisition, which is scheduled to close on or about June 15, 2011. Upon closing of the Property Acquisition, each holder of a Subscription Receipt shall receive one common share of Wild Stream without any further action or payment of any additional funds, and the Escrowed Funds will be released to Wild Stream. If the Property Acquisition is not completed by June 30, 2011, the escrowed funds and any interest earned thereon will be returned to the holders of Subscription Receipts.

INCREASE TO CREDIT FACILITY

Wild Stream is also pleased to announce an increase in its current credit facilities to an amount of $100 million, replacing the previous $70 million. These facilities are secured by substantially all of the assets of the Company and include customary terms and conditions along with covenants consistent with the previous credit facility. The increase in the credit facilities will be used to facilitate future growth initiatives of Wild Stream and is not dependant on completion of the Property Acquisition.

GENERAL

Wild Stream's multi-year inventory, proven execution abilities and commitment to prudent fiscal management should allow the Company to see meaningful per share growth for the foreseeable future. We remain committed to increasing shareholder value through a combination of exploration, strategic acquisitions and subsequent exploitation while maintaining a conservative approach to balance sheet management.

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements. More particularly, this news release contains forward-looking statements concerning the closing of the Property Acquisition, the use of proceeds for the Offering, the nature of the assets to be acquired pursuant to the Property Acquisition, the over-allotment option, the release of the Escrowed Funds, the issuance of Common Shares pursuant to the exchange of Subscription Receipts, Wild Stream's future growth and its growth strategy. In addition, the use of any of the words "guidance", "initial, "scheduled", "will", "prior to", "estimate", "anticipate", "believe", "potential", "should", "unaudited", "forecast", "future", "continue", "may", "expect", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the receipt of required regulatory approvals, success of optimization and efficiency improvement projects, the availability of capital, current legislation, the success of future drilling and development activities, the performance of existing wells and new wells, Wild Stream's growth strategy, general economic conditions, availability of required equipment and services and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements 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, risks associated with the oil and gas industry in general (e.g., 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 production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations, a failure to realize the anticipated benefits of the Property Acquisition, a lack of availability of qualified personnel, a failure to obtain any required regulatory approvals, inability to access sufficient capital from internal or external sources, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in the Company's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.comor Wild Stream's website www.wildsr.com.

The forward-looking statements contained in this news release are made as of the date hereof and the Company 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.

This news 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 news 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.

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

  • Wild Stream Exploration Inc.
    Mr. Neil Roszell
    President and Chief Executive Officer
    403-767-1250
    403-232-8083 (FAX)

    Wild Stream Exploration Inc.
    Mr. Jerry Sapieha, CA
    Vice President, Finance and Chief Financial Officer
    403-767-1265
    403-232-8083 (FAX)
    www.wildsr.com