Pulse Oil cashed-up and ready to roll in Alberta
Alberta-focused energy firm Pulse Oil Corp (CVE:PUL) has closed the first tranche of its private placement as it embarks on a new era of operations.
The company has also formally completed the acquisition of certain oil and gas assets in the Queenstown area of the Province of Alberta, and signed a definitive agreement to purchase certain Whiskey Creek light oil and gas assets, as announced last month.
Pulse raised C$3.11mln in the first tranche of the private placement, issuing 25.96mln units at a price of 12 cents each.
Each basic unit comprised one common share of Pulse plus an attached warrant that entitles the holder to purchase one Pulse share, within 24 months of the issue, at an exercise price of 17 cents.
Pulse also raised C$1.70mln through the issue of 13.06mln “flow-through” units at a price of 13 cents each.
“Our financing is proceeding positively with solid interest and support from a variety of investors who, we believe, recognize that it is an opportune time to start-up a high growth, new oil and gas business with a clean balance sheet at the bottom of an energy cycle,” said Garth Johnson, chief executive officer of Pulse.
“Our team feels this first tranche of the private placement, which is Pulse’s first financing under the current management team, not only allows us to complete the strategic Mannville acquisition, but also allows us to get to work re-starting shut-in production, and increasing cash flow as soon as possible” he added.
“We are now positioned to conduct our operational plan, move to close the second tranche of the private placement in the coming weeks and implement our plan to optimize the value of Pulse’s increasing asset base,” Johnson said.
Drew Cadenhead, Pulse’s president and chief operating officer, said the funds, along with expected cash-flow from operations, would allow the company to start drilling at its Mannville property.
“With 20 development in-fills already identified from extensive well control in the area and on 3-D seismic [data], we believe the low-risk nature of these producing assets, when combined with the upside potential of low-cost horizontal drilling operations, should allow Pulse to grow in strength and size quickly to create value for our shareholders,” Cadenhead said.
Pulse intends to use its 3D seismic database to expand its horizontal drilling inventory in the Mannville area, as well as further delineate identified opportunities in the Ellerslie, Pekisko/Shunda and Nisku formations.
The proceeds of the share issue will also enable Pulse to reactivate production at its Bigoray assets, where it is targeting output of around 250 barrels of oil equivalent per day (net to Pulse).
At that rate, Bigoray would be cash flow positive, Cadenhead predicted.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/179411/pulse-oil-cashed-up-and-ready-to-roll-in-alberta-179411.html
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