Business
Connacher announces Flow-Through Share offering; continuation of commitment to explore resource base
Connacher announces Flow-Through Share offering; continuation of commitment to explore resource base
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nOct. 5, 2009 (Canada NewsWire Group) -- CALGARY, Oct. 5 /CNW/ -- Connacher Oil and Gas Limited (CLL-TSX) (\"Connacher\" or the \"Corporation\") announces today that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets under which Connacher will issue 19,250,000 flow-through common shares (\"Flow-Through Shares\") on a \"bought deal\" basis for gross proceeds of approximately $25 million ($1.30 per Flow-Through Share). Connacher has granted the underwriters an over-allotment option to purchase up to an additional 2,887,500 Flow-Through Shares on the same terms and conditions, exercisable in whole or in part up to 30 days following closing of the offering, for aggregate gross proceeds of approximately $29 million. The offering is scheduled to close on or about October 22, 2009.Connacher will use the gross proceeds from the sale of the Flow-Through Shares to pay exploration expenses on the Corporation's properties which qualify as Canadian Exploration Expenses (as such term is defined in the Income Tax Act (Canada)). It is anticipated that the net proceeds will primarily be used to further delineate and define Connacher's oil sands properties through the drilling of additional core holes and for conducting a three-dimensional (3-D) seismic program over Connacher's oil sands properties. Connacher remains positive about, and committed to, the exploration of its oil sands acreage to enhance its reserve and resource base which is anticipated to support future bitumen production growth.A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada except Quebec. The offering is subject to the approval of such securities regulatory authorities, in addition to approval by the Toronto Stock Exchange.This press release is not an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction. Securities may not be offered or sold in the United States absent registration or an applicable exemption from registration.Connacher Oil and Gas Limited is a Calgary-based integrated oil company. Its primary upstream production is from oil sands operations at its 10,000 bbl/d Pod One SAGD plant in northeastern Alberta. The company has reactivated its construction activities and has fully funded a second similar-sized SAGD...