PRD Energy Announces Insider Financing and Operational Update
March 24 2014 - 7:00AM
Marketwired
PRD Energy Announces Insider Financing and Operational Update
CALGARY, ALBERTA--(Marketwired - Mar 24, 2014) - PRD Energy Inc.
("PRD" or the "Company") (TSX-VENTURE:PRD) announces a $1.75
million insider financing and operational update.
Insider financing
PRD announced that it is proceeding with the sale of 1.75
million common shares of the Company (the "Shares") to Mr. Michael
Greenwood, the Chairman and Chief Executive Officer, and other
directors and officers of the Company at a price of $1.00 per Share
for gross proceeds of $1.75 million. The Shares will be sold on a
private placement basis and will be subject to a four-month plus
one day resale restriction from the closing date. Mr. Greenwood has
advised the Company that he intends to participate in the next
equity financing of the Company.
The net proceeds of the offering will be used to fund the
Company's working capital deficit of $1.0 million, including
payment of the costs and expenses to drill, complete and test the
Boerger 7A well in Germany, and for general corporate purposes.
The offering is exempt from the minority approval requirements
of TSX Venture Exchange Policy 5.9/Multi-Lateral Instrument
61-101-Protection of Minority Security Holders in Special
Transactions because the value of the offering does not exceed 25%
of the Company's market capitalization.
The offering is scheduled to close on or about March 27, 2014
and is subject to the approval of the TSX Venture Exchange.
Operational update
The Company and its partner continue to produce the Boerger 7a
well and monetize its production. Commissioning of the production
facilities is ongoing and expected to be completed in the next two
weeks after mechanical reconfiguration of select components of the
facilities. PRD is highly encouraged by the initial results of this
well to date. Continuous optimized operations will allow the
Company and its partner to better understand the long-term
capability of the well and determine the ultimate field development
opportunity at Boerger.
About PRD Energy
PRD Energy Inc. is a Calgary based oil and gas company engaged
in the exploration, development and acquisition of, natural gas and
crude oil, in Germany. All activities of the Company in Germany are
undertaken by its wholly-owned subsidiary, PRD Energy GmbH. PRD's
common shares are listed on the TSX Venture Exchange with the
symbol "PRD".
Forward looking information
This news release contains forward-looking information relating
to the sale of Shares, Mr. Greenwood's participation in the next
equity financing of the Company, the use of proceeds of the
offering, expected closing date of the offering, commissioning of
the production facilities, understanding the long-term capability
of the well, determining the ultimate field development opportunity
and other statements that are not historical facts. Such
forward-looking information is subject to important risks,
uncertainties and assumptions. The results or events predicated in
this forward-looking information may differ materially from actual
results or events. As a result, you are cautioned not to place
undue reliance on this forward-looking information.
Forward-looking information is based on certain factors and
assumptions regarding, among other things, receipt of approval of
the TSX Venture Exchange for the offering, the future performance
of the Boerger 7A well, the success of future exploration and
development activities in the Boerger field, the impact of
increasing competition; the Company's need for future financing;
future issuances of equity to satisfy the Company's financial
needs; the ability of the Company to obtain financing to fund its
operations on acceptable terms; the general stability of the
economic and political environments in which the Company operates
or owns interests; the timely receipt of any required regulatory
approvals; the ability of the Company to obtain qualified staff,
equipment and services in a timely and cost efficient manner;
drilling results; the ability to operate in a safe, efficient and
effective manner; field production rates and decline rates; the
ability to replace and expand oil and natural gas reserves through
acquisition, development of exploration; the timing and costs of
pipeline, storage and facility construction and expansion and the
ability of the Company to secure adequate product transportation;
future oil and natural gas prices; currency, exchange and interest
rates; the regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which the Company
operates; and the ability of the Company to successfully market its
oil and natural gas products, and other similar matters. While the
Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect.
Forward looking-information is subject to certain factors,
including risks and uncertainties that could cause actual results
to differ materially from what is currently expected. These factors
include risks associated with the failure to identify economic
operations in the Boerger pool following the interpretation of
seismic data, declining production from the Boerger 7A well,
instability of the economic and political environments in which the
Company operates or owns interests, ability to manage water
production and disposal, oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations,
environmental risks, competition from other producers, inability to
retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, the inability to settle the definitive
terms of the farmout arrangements, failure to realize the
anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals, inability to
obtain approvals from the Company's partners in operations, and
ability to access sufficient capital from internal and external
sources, reliance on key personnel, regulatory risks and delays,
including risks relating to the acquisition of necessary licenses
and permits, environmental risks and insurance risks.
You should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, the Company is under no
obligation and does not undertake to update this information at any
particular time, except as required by law.
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.
Michael GreenwoodChairman and Chief Executive Officer(403)
234-0501(403) 234-0511Mark HornettPresident and Chief Operating
Officer(403) 234-0501(403) 234-0511Jeff ScottVice President,
Finance and Chief Financial Officer(403) 234-0501(403) 234-0511
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