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Result Energy Inc. Announces Closing of $4.6 million Private Placement and Operations Update
Result Energy Inc. Announces Closing of $4.6 million Private Placement and Operations Update.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Sept. 15 /CNW/ - Result Energy is pleased to announce that it\nhas completed an expedited non-brokered private placement of common shares,\nraising gross proceeds of $4,609,800 to finance exploration and development\nactivities, and for general corporate purposes. The Placement consisted of\n2,473,066 common shares issued at $0.75 per share for proceeds of $1,854,800\nand 2,755,000 common shares issued on a flow-through basis at $1.00 per share\nfor proceeds of $2,755,000. Directors, officers and management of Result\nparticipated for 13% of the Placement.\nThe Placement was completed pursuant to a price reservation application\nthat was filed with the TSX Venture Exchange on September 1, 2005. Finders\nfees totaling $112,500 were paid on a portion of the placement at 5% of gross\nproceeds. The securities issued will be subject to a four-month hold period\nfrom the date of closing. Following completion of this placement, Result has\n38,075,513 common shares outstanding.\nFor the flow-through portion of the placement, Result is required to\nincur qualifying expenditures of $2,755,000 by December 31, 2006 and will\nrenounce this amount of Canadian Exploration Expenses to subscribers effective\nDecember 31, 2005.\n\nOperations Update\n-----------------\n\nResult is currently drilling 1.0 (0.36 net) additional well at Worsley,\ntargeting the Company's Devonian high-deliverability gas play. This well is\nexpected to reach total depth and complete production testing prior to the end\nof October. Result and partners have initiated the process of constructing a\nnew gas pipeline to tie-in the Worsley project volumes. Subject to regulatory\napprovals, equipment availability and weather, the Company expects gas to flow\nby year-end 2005.\nAt Winfield/Pembina, in west central Alberta, Result has completed and\ntested its recent Viking gas discovery. This well flowed at a stabilized rate\nof 2.3 million cubic feet per day, with minor condensate and water, at an 18%\neffective reservoir drawdown. It is currently shut-in for pressure buildup\nanalysis. The Company holds a 50% working interest before payout (BPO) and a\n30% working interest after payout (APO). Based on the encouragement provided\nby this well, Result and partners have elected to immediately acquire an\nadditional 5 square miles of 3-D seismic data within the...