Forent Announces $1.0 Million Flow-Through Financing; Chairman W. Brett Wilson Commits $250,000 to Financing
December 13 2013 - 6:30AM
Marketwired Canada
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
Forent Energy Ltd. ("Forent" or the "Company") (TSX VENTURE:FEN) announces that
it plans to issue and sell on a non-brokered private placement basis (the
"Private Placement") up to 10,000,000 common shares of the Company to be issued
on a flow-through basis (the "Flow-Through Shares") at a price of $0.10 per
common share for total consideration of $1,000,000. Forent will renounce to
subscribers of the Flow-Through Shares, effective on or before December 31,
2013, Canadian Exploration Expense in an amount equal to the aggregate gross
proceeds.
The Funds will be used for crude oil development expenditures, which will
qualify as renounceable exploration expenses, on the central Alberta properties
that were acquired in October 2013. Forent's near term capital program of $4.6
million is expected to add production of approximately 190 bopd and add more
than $10.0 million in net asset value. The Company's high impact Montgomery #2
well is planned for Q1 2014 at 100% partner expense (FEN will retain 30 %
working interest post completion). For additional information on these
properties please see Forent's updated corporate presentation which is available
at www.forentenergy.com.
W. Brett Wilson, the Company's Chairman, owns directly, indirectly and through
affiliates, approximately 22.3% of the common shares of Forent and has indicated
he will subscribe for at least his pro rata share of the Flow-Through Shares
being offered. Other insiders of the Company have already indicated they will
subscribe for at least $110,000 in the Private Placement.
The Private Placement is subject to applicable regulatory and TSX Venture
Exchange approval and completion of definitive documentation. Common shares
issued under the Private Placement will be restricted from resale for a four
month period under Canadian securities laws. Closing of the Private Placement is
expected to occur on or about December 23, 2013.
Shares of Forent trade on the TSX Venture Exchange under the symbol "FEN".
ADVISORY: Certain information in this news release, including the anticipated
closing of the Private Placement, the use of the proceeds to incur Canadian
Exploration Expenses, and the drilling of wells at the Company's Wayne, Twinning
and Montgomery properties, constitute forward-looking statements under
applicable securities laws. Although Forent believes that the expectations
reflected in these forward-looking statements are reasonable, undue reliance
should not be placed on them because Forent 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.
The closing of the Private Placement could be delayed if Forent is not able to
obtain the necessary stock exchange approval on the timeline it has planned. The
Private Placement will not be completed at all if this approval is not obtained
or some other condition to the closing is not satisfied. Accordingly, there is a
risk that the Private Placement will not be completed within the anticipated
time or at all. The forward-looking statements contained in this news release
are made as at the date of this news release and the Corporation does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural
gas volumes have been converted to barrels of oil at six thousand cubic feet
(mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in
isolation. A boe conversion of six thousand cubic feet per barrel is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. References to oil in
this discussion include crude oil and natural gas liquids (NGLs).
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Forent Energy Ltd.
Richard Wade
President & CEO
(403) 262-9444 #211
rwade@forentenergy.com
Forent Energy Ltd.
Brad R. Perry
Acting CFO
(403) 262-9444 #208
(403) 262-4351 (FAX)
bperry@forentenergy.com
www.forentenergy.com
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