November 9, 2018 - 10:07 AM EST
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Cuda Oil and Gas Inc. Announces Closing of First Tranche of Brokered Private Placement

Calgary, Alberta--(Newsfile Corp. - November 9, 2018) - Cuda Oil and Gas Inc. (TSXV: CUDA) ("Cuda" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced private placement of common shares of the Company (the "Common Shares") for gross proceeds of approximately $7.2 million (the "Offering"). The Company issued 2,981,212 Common Shares at a price of $2.40 per share pursuant to the first tranche of the Offering. The Common Shares issued pursuant to the Offering are subject to a four month hold period. The Company anticipates using the net proceeds of the Offering for exploration and development activities, acquisitions and for working capital and general corporate purposes. Cuda anticipates that it will complete a second tranche of the Offering in November 2018.

In connection with the Offering, the Company has entered into an agency agreement with a syndicate of investment dealers led by KES 7 Capital Inc., with co-joint book runners Eight Capital and Cormark Securities Inc.

Certain officers and directors of the Company subscribed for a total of 198,312 Common Shares pursuant to the first tranche of the Offering for an aggregate subscription price of $475,949. The subscriptions by officers and directors are related party transactions within the meaning of applicable securities laws that are exempt from the formal valuation and minority approval requirements applicable to related party transactions.

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long term focus on large, light oil resource based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.

For further information please contact:

Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862

Forward-Looking Information

This news release contains forward-looking information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to the use of proceeds from the Offering and the closing of a second tranche of the Offering. Risk factors that could prevent forward-looking statements from being realized include market conditions, ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future oil and gas prices. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Source: Newsfile Corp. (November 9, 2018 - 10:07 AM EST)

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