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Result Energy Inc. Announces Closing of $4.46 million Private Placement and Operations Update
Result Energy Inc. Announces Closing of $4.46 million Private Placement and Operations Update.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Oct. 4 /CNW/ - Result Energy Inc. ("Result", RTE-X) is pleased\nto announce that on September 28 and October 4, 2007 it completed a\nnon-brokered private placement of common shares which consisted of 7,410,000\ncommon shares issued on a flow-through basis for income tax purposes at\n$0.60 per share (the "Placement"). The gross proceeds of $4,446,000\n($4,312,620 net of finders fees payable to third parties of $133,380) is\nintended to be used to finance ongoing exploration activities, and for general\ncorporate purposes. Result is required to incur qualifying expenditures\ntotaling $4,446,000 by December 31, 2008 and will renounce this amount of\nCanadian Exploration Expenses ("CEE") to subscribers effective December 31,\n2007.\n\n\nThe shares issued will be subject to a four-month hold period from the\ndate of each closing. Following completion of this placement, Result has\n54,891,638 common shares outstanding.\n\n\n Operations Update\n -----------------\n\n\nDespite the ongoing softness in natural gas prices, the Company continues\nto take a positive long-term outlook towards exploration and development\nactivities in Western Canada. Result continues to generate and carry a\nsizeable drilling inventory on a variety of projects. In the near term, we\nplan to shift our exploration drilling focus towards oil and liquids-rich\nnatural gas plays. We also expect that the market price for natural gas will\nrecover over the next 12 months, at which point we will be well-positioned to\nramp up activities on several large-scale natural gas initiatives. The current\nPlacement allows the Company to maintain momentum on several key development\nprojects, which will continue to underpin the Company's cash flow.\n\n\nResult's current field-estimated production volume is approximately\n1,065 boe/d. Volume has declined from previous record levels achieved in\nQ1-07, primarily due to payout conversions on two high-volume Pembina wells.\n\n\nDuring the Q4-07 period, Result plans to participate in the drilling of\nup to 10 gross wells. The highlights of this drilling program include:\n\n\n Exploration Activity\n --------------------\n\n\nWindfall - Result has spudded the first of two wells, which will test a\nnew liquids-rich Devonian-aged natural gas prospect at Windfall, Alberta. The\ncompany's wo...