July 30, 2019 - 10:48 AM EDT
Print Email Article Font Down Font Up Charts

Cuda Oil and Gas Inc. Announces Closing of Private Placement for Gross Proceeds of $7.1 Million

CALGARY, Alberta

 

Cuda Oil and Gas Inc. ("Cuda" or the "Company") (TSXV:CUDA) is pleased to announce that it has completed its previously announced brokered private placement of units (“Units”) for gross proceeds of $7.1 million (the “Offering”).  The Offering was co-led by KES 7 Capital Inc. (“KES 7”) and Eight Capital (together the “Co-Lead Agents”) and included a syndicate of agents consisting of Seaport Global Securities LLC and Cormark Securities Inc. (collectively with the Co-Lead Agents, the “Agents”).  KES 7 acted as sole bookrunner.  Under the Offering, the Company has granted the Agents an over-allotment option, exercisable for a period of 30 days from closing, to sell additional Units representing 15% of the base Offering.

Pursuant to the Offering, the Company issued an aggregate of 14,282,000 Units at a price of $0.50 per Unit, each Unit consisting of one common share in the capital of the Company (“Common Share”) and one-half of one Common Share purchase warrant (“Warrant”), each full Warrant entitling the holder thereof to acquire one Common Share at a price of $0.60 per Common Share for a period of 24 months from its date of issuance. The Common Shares and Warrants are subject to a four month hold period.

The Company anticipates using the net proceeds of the Offering, combined with the proceeds of its previously announced and closed credit facility re-financing on July 3, 2019 to further fund and execute its the natural gas miscible flood program (the “Program”) at the Barron Flats (Deep) Federal Unit (“BFU”) in Converse County, Wyoming.  Remaining net proceeds from the Offering will be used for development drilling, working capital and general corporate purposes.

Mr. Glenn Dawson, President and Chief Executive Officer of Cuda remarked: “The Offering is an integral milestone in support of the 2019 capital plan to fund the development of the significant light oil reserves assigned to the Company at year-end 2018.” 

Mr. Dawson continued: “The Powder River Basin, specifically Converse County, continues to see higher activity levels from major oil and gas E&P companies and private equity backed firms. The stack of horizontal oil targets continues to deliver positive results. The Company has recognized that several additional horizontal opportunities exist below the conventional Shannon Sand on the land base, specifically within the Frontier, Niobrara and Muddy formations. These opportunities provide for further resource development possibilities on Company lands.”

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.

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 potential exercises of the over-allotment option by the Agents; the use of proceeds from the Offering; the Company’s development and drilling plans; the anticipated results of the Company’s capital program; the existence and performance of resource and reserves opportunities on the Company’s lands and related lands; and activity levels in the Company’s core areas.  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.

 

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


Source: Business Wire (July 30, 2019 - 10:48 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice