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Pine Cliff Energy Ltd. Announces Closing of Strategic Acquisition, CDE Flow-Through and Common Share Equity Financings
Calgary, Alberta--(Newsfile Corp. - June 3, 2019) - Pine Cliff Energy Ltd. ( TSX: PNE ) ("...
About this update from Pine Cliff Energy Ltd.
[{"type":"text","content":"Pine Cliff Energy Ltd. Announces Closing of Strategic Acquisition, CDE Flow-Through and Common Share Equity FinancingsCalgary, Alberta--(Newsfile Corp. - June 3, 2019) - Pine Cliff Energy Ltd. (TSX: PNE) (\"Pine Cliff\" or the \"Company\") is pleased to announce that its previously announced acquisition to acquire oil and natural gas assets (the \"Assets\") in the Ghost Pine area of Central Alberta for net cash consideration of $8.6 million, after estimated closing adjustments (the \"Acquisition\"), has now closed. Pine Cliff is also pleased to announce that is has closed both private placements of flow through shares for gross proceeds of $4.0 million (the \"Flow-Through Private Placement\") and common shares for gross proceeds of $1.4 million (the \"Common Share Private Placement\"). Acquisition HighlightsThe Assets add growth opportunities in the Pekisko oil play, where Pine Cliff drilled its first oil well in late 2018. Based on Pine Cliff's internal estimates, the Assets will increase Pine Cliff's development inventory to an estimated 28 gross (27 net) Pekisko oil locations. The Assets currently produce approximately 1,600 barrels of oil equivalent (\"Boe\") per day or 9,600 thousand cubic feet equivalent (\"Mcfe\") per day, weighted 80% to natural gas, 7% to oil and 13% to natural gas liquids. The production from the Assets has increased Pine Cliff's estimated annual production volumes to a range of 19,250 to 19,750 Boe per day (115,500 to 118,500 Mcfe per day), weighted 92% to natural gas.CDE Flow-Through and Common Share Equity FinancingsPine Cliff issued by way of a non-brokered private placement, 14,492,754 \"flow-through\" common shares (within the meaning of the Income Tax Act (Canada)) (the \"Flow-Through Shares\"), at a price of $0.276 per Flow-Through Share, resulting in gross proceeds of $4.0 million. The net proceeds of the Flow-Through Private Placement will be used to incur eligible Canadian development expenses (\"CDE\"). Pine Cliff will, pursuant to the provisions of the Income Tax Act (Canada), incur all eligible CDE prior to March 30, 2020 of the Flow-Through Private Placement. Pine Cliff also issued by way of a non-brokered private placement, 6,215,652 common shares (the \"Common Shares\"), at a price of $0.23 per Common Share, resulting in gross proceeds of $1.4 million. Insiders, including directors and...