/NOT FOR DISTRIBUTION TO
Under the terms of the agreement, Yangarra will issue an aggregate of 5,905,600 common shares to be issued on a flow-through basis in respect of Canadian development expenses ("CDE") (the "CDE FT Shares") at a price of
Yangarra has also granted to the Underwriters an option to purchase additional CDE FT Shares, equal to 15% of the number of CDE FT Shares sold pursuant to the offering at the offering price, for market stabilization purposes and to cover overallotments for a period expiring 30 days after the date of closing.
The total aggregate gross proceeds are
The proceeds from the issuance of CDE FT Shares will be used by Yangarra to incur CDE expenses on Yangarra's existing Canadian properties prior to
The CDE FT Shares will be offered by way of short form prospectus in each of the
Proceeds of the Offering will assist with accelerated development of the Chambers area. A 15 mmcf/d compression facility was constructed by Yangarra's OFS group which together with a 10.5 km sales line will be completed by the end of this week. The sales line was installed in 28 days with compelling costs which demonstrate the advantage of Yangarra's OFS group. In addition, production from recently acquired land was tied into this new facility with a 4.5 km gathering line constructed concurrently with the sales line. The Company expects the facility to be operational in the next few days with the initial three wells (currently testing) to be tied-in, followed by five wells in early April.
The accelerated development will not affect total capital spending or production guidance for the year, however the Company expects to be in a position to potentially increase production guidance later in the year.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the common shares in any jurisdiction, including
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Certain information regarding Yangarra set forth in this news release, including management's assessment of future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the 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 closing of the Offering, the use of proceeds of the Offering, the tax treatment of the CDE FT Shares and the timing of the renunciation of the Qualifying CDE Expenditures.
The forward-looking statements are based on key expectations and assumptions made by Yangarra. Although Yangarra believes that the expectations and assumptions on which the forward-looking statements are based on reasonable, undue reliance should not be placed on the forward-looking statements because Yangarra 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 included but are not limited to, risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. Certain of these risks are set out in more detail in Yangarra's annual information form dated
The forward-looking statements contained in this press release are made as of the date hereof and Yangarra 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 is required by applicable securities laws.
All reference to $ (funds) are in Canadian dollars.
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