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April 4, 2008
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Open Range Energy Corp. Announces Closing of $25 Million Financing
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CALGARY, ALBERTA--(Marketwire - April 4, 2008) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Open Range Energy Corp. ("Open Range") (TSX:ONR) is pleased to announce that it has completed the issue of 2,595,300 common shares ("Common Shares") at a price of $4.20 per share and 2,400,000 Common Shares issued on a "flow-through" basis ("Flow-Through Shares") at a price of $5.00 per share, resulting in gross proceeds of approximately $22.9 million. The offering was conducted by a syndicate of underwriters led by Cormark Securities Inc. and including Tristone Capital Inc., Canaccord Capital Corporation, GMP Securities L.P. and MGI Securities Inc. (collectively, the "Underwriters"). Open Range is also pleased to announce that an over-allotment option granted to the Underwriters to purchase an additional 500,000 Common Shares at a price of $4.20 per share has been exercised in full, resulting in additional gross proceeds of $2.1 million.
The net proceeds from the sale of the Common Shares will be used to fund Open Range's exploration and development drilling program and for general working capital purposes while proceeds from the sale of the Flow-Through Shares will be used to fund ongoing exploration activities eligible for Canadian exploration expenses.
Open Range Energy Corp. is a publicly traded Canadian energy company involved in the exploration, development and production of natural gas and crude oil in western Canada.
Reader Advisory
This news release contains certain forward-looking statements, which include certain assumptions. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, 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 foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
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CONTACT INFORMATION:
Open Range Energy Corp.
A. Scott Dawson, P.Eng.
President and Chief Executive Officer
(403) 205-3704
Website: www.openrangeenergy.com
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INDUSTRY: Energy and Utilities - Oil and Gas
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