Headwater Gold Inc. press release
Result Energy Inc. announces closing of $3.275 million Convertible Debenture Financing
CSE - Canadian National Stock Exchange · Gold · Silver · Arsenic · Antimony · Mercury · Selenium · Molybdenum · Gypsum · Zeolite · Canada
CALGARY, Sept. 19 /CNW/ - Result Energy Inc. ("Result", TSX Venture:RTE) is pleased to announce that it has closed a private placement offering of convertible debentures (the "Financing") for gross proceeds of $3.275 million ($3,127,500 net of commissions). Completion of the Financing is subject to receipt of final regulatory and stock exchange approvals, and the securities issued will be subject to a hold period until January 14, 2007. Finders fee commissions totalling $147,500 were paid at closing to four broker agents who were involved in the Financing, in which directors and officers of Result subscribed for $225,000 of the proceeds. Proceeds from the Financing will be used for general corporate purposes, and to supplement working capital. The convertible debentures will bear interest at prime + 3%, are due February 28, 2008, and are convertible at the option of the holder into Result common shares at $1.15 per common share. Commencing 12 months after Closing, the convertible debentures will be (1) repayable in cash at Result's option, subject to the Debenture holder's prior right to convert, and (2) in the event that Result's common shares trade at $1.35 or above for a period of 20 consecutive trading days, Result shall have the option to require conversion to common shares of Result at the Conversion Price. After much longer than expected non-controllable delays, in the month of August Result brought two shut-in gas well projects at Pembina and Clear Hills on-stream. Although production from these projects has not yet been brought up to full capacity, field estimated production levels, net to Result, are currently at approximately 1,020 boe/d, with estimated additonal production capacity of approximately 350 boe/d not yet on stream from these two projects.
Result is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result's three core areas are in the Peace River Arch region of Alberta, the Pembina area in central Alberta, and south-west Saskatchewan.
Investors are cautioned that this news release may contain forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.