Newly formed pure-play Montney ExploreCo completes C$45 million subscription receipt offering
On July 8, 2014, Crocotta Energy Inc. (Crocotta) announced the completion of the previously announced bought deal private placement of subscription receipts of 1828073 Alberta Ltd. ("ExploreCo"), a new Montney‐focused exploration and production company consisting of Crocotta's assets in northeast British Columbia and northwest Alberta.
Pursuant to the offering, announced June 12, 2014, the underwriters led by National Bank Financial Inc. and including Haywood Securities Inc., Macquarie Capital Markets Canada Ltd., GMP Securities L.P., Paradigm Capital Inc., Acumen Capital Finance Partners Limited, BMO Nesbitt Burns Inc., Dundee Securities Ltd., Scotia Capital Inc., Clarus Securities Inc., Jennings Capital Inc., Canaccord Genuity Corp., Cormark Securities Inc. and Desjardins Securities Inc., issued 26471000 subscription receipts at a price of C$1.70 per subscription receipt, for aggregate gross proceeds of approximately C$45 million.
The gross proceeds from the offering will be held in escrow pending satisfaction of certain escrow release conditions, which includes the completion of Crocotta's arrangement with Long Run Exploration Ltd. (Long Run) and ExploreCo, whereby Long Run will acquire all of the issued and outstanding common shares of Crocotta.
ExploreCo is a growth‐oriented, exploration‐focused entity with approximately 2,300 BOE/d of liquids‐rich natural gas.
Crocotta is an emerging junior oil and natural gas company engaged in the acquisition, exploration, development, and production of oil and natural gas reserves in Western Canada.
Long Run is a Calgary based intermediate oil and natural gas company focused on light oil development and exploration in western Canada.
Further information can be found on Crocotta's website.