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.
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.
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.