CALGARY,
AB, March 23, 2023 /CNW/ - Journey Energy
Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the
"Company") is pleased to announce it has closed the bought
deal flow-through share financing that was previously announced on
March 1, 2023. The full 15%
over-allotment was exercised bringing the total equity issuance to
3,040,031 flow-through common shares (the "Flow Through
Shares") at a price of $6.62 per
share for total gross proceeds of $20,125,005. The financing was successfully
concluded by Journey's syndicate of underwriters, which included
StifelFirst Energy, as lead underwriter and sole book-runner, and
also included Cormark Securities Inc., Acumen Capital Finance
Partners Limited, Eight Capital and Peters & Co. Limited.
Pursuant to the financing, the Company will incur qualifying
Canadian development expenses ("CDE"), on or before
March 31, 2024, in an amount not less
than the gross proceeds raised from the issuance of the
Flow–Through Shares (the "Total Commitment Amount").
CDE in an amount equal to $10,000,000 (the "2023 Commitment Amount")
will be renounced to purchasers of Flow–Through Shares with an
effective date no later than December
31, 2023. CDE in an amount equal to the Total
Commitment Amount minus the 2023 Commitment Amount will be
renounced to purchasers of Flow–Through Shares hereunder with an
effective date or dates of no later than March 31, 2024. It is currently expected
that the proceeds from the FTS issuance will occur throughout the
second half of 2023 and the first quarter of 2024. Journey is
currently in the process of refining its capital budget for the
remainder of 2023 and intends to provide full year guidance on or
about March 31, 2023.
The Flow-Through Shares have not been registered under the U.S.
Securities Act or any U.S. state securities laws, and may not be
offered or sold in the United States or to, or for the
account or benefit of, United States persons absent
registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws.
About the Company
Journey is a Canadian exploration and production company focused
on conventional, oil-weighted operations in western Canada. Journey's strategy is to grow its
production base by drilling on its existing core lands,
implementing water flood projects, and executing on accretive
acquisitions. Journey seeks to optimize its legacy oil pools on
existing lands through the application of best practices in
horizontal drilling and, where feasible, with water floods.
FORWARD LOOKING
STATEMENTS:
This press release contains forward-looking statements. The use
of any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. More particularly, this press release contains
statements with respect to the use of proceeds of the financing,
the tax treatment of the Flow-Through Shares and the timing of the
renunciation of the development expenses.
The forward-looking statements are based on certain key
expectations and assumptions made by Journey. Although Journey
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because
Journey can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, risks associated with the
condition of the global economy, including trade, public health
(including the impact of COVID-19) and other geopolitical risks;
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks); commodity price and exchange rate
fluctuations and constraint in the availability of services,
adverse weather or break-up conditions; uncertainties resulting
from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures.
Certain of these risks are set out in more detail in Journey's AIF
dated March 23, 2021 and in Journey's MD&A for the
year ended December 31, 2022, both of which have been filed on
SEDAR and can be accessed at www.sedar.com .
The forward-looking statements contained in this press release
are made as of the date hereof and Journey undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
SOURCE Journey Energy Inc.