20th Feb 2007 07:33
Oilexco Incorporated enters into agreement with Canaccord Adams Limited
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Feb. 19 /CNW/ - Oilexco Incorporated ("Oilexco") is pleased to announce that it has entered into an agreement with Canaccord Adams Limited ("Canaccord") pursuant to which Canaccord has agreed to purchase for resale to the public, on a bought deal basis, an aggregate of 15,000,000 common shares (the "Common Shares") of Oilexco at a price of CDN$7.82 ((pnds stlg)3.44) per Common Share (the "Issue Price"), resulting in gross proceeds of approximately US$100.7 million ((pnds stlg)51.6 million) (the "Offering"). The terms of the offering provide for an option (the "Over-Allotment Option") pursuant to which Canaccord may purchase the lesser of: (i) the "over-allocation position" determined as at the Closing Date; and (ii) that number of Common Shares which represents 15% of the Common Shares sold pursuant to the Offering at the Issue Price. The Underwriter's Option will be exercisable by Underwriters, in whole or in part, at any time for 30 days following the closing. If the Over-Allotment Option is exercised in full, the gross proceeds of the Offering will be approximately US$115.8 million ((pnds stlg)59.34 million) in aggregate.
The transaction is subject to certain conditions including normal regulatory approvals. The Offered Shares will be offered in the provinces of Alberta, British Columbia and Ontario by way of a short form prospectus and on a private placement basis elsewhere, including in the United Kingdom. Closing is anticipated to occur on or about March 13, 2007.
Oilexco intends to use the proceeds of the offering for its exploration programme in the North Sea and for working capital.
Forward-Looking Statements
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Oilexco's control, including: the impact of general economic conditions in the areas in which Oilexco operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Oilexco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, which Oilexco will derive therefrom. All statements included in this press release that address activities, events or developments that Oilexco expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include future production rates, completion and production timetables and costs to complete wells, and production facilities. These statements are based on assumptions made by Oilexco based on its experience perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Oilexco is listed on the Alternative Investment Market of the London Stock Exchange plc and the Toronto Stock Exchange, in each case trading under the symbol OIL.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information: Oilexco Incorporated, Arthur S. Millholland, President, (403) 262-5441; or Brian L. Ward, Chief Financial Officer, (403) 262-5441; or Gerry L. Roe, Chief Operating Officer, (403) 262-5441; or Canaccord Adams Limited, Robin J Birchall, Vice-President, +44 20 7050 6741; or Adam A. Janikowski, Associate, +44 20 7050 6746 (OIL)
OILEXCO INCRelated Shares:
OIL.L