Tuesday, 6 March 2012

New Zealand Energy boosts bought deal financing to $55.2 mln from $35.1 mln

New Zealand Energy Corp. (CVE:NZ) (OTCQX:NZERF) said Friday morning that it has increased a bought deal financing announced just yesterday to $55.2 million from $35.1 million previously.
The latest agreement with Canaccord Genuity, on behalf of a syndicate of underwriters, will see the purchase, on a bought deal basis for resale to the public, of 18.4 million New Zealand Energy shares, at a price of $3.00 each.
The company has also given the underwriters an over-allotment option to purchase, on the same terms, up to an additional 2.76 million common shares for another $8.28 million in proceeds.
The option can be exercised in whole or in part at any time up to 30 days after the offering closes.
The company said it will use the new funds to explore and develop its oil and gas properties, as well as for additional geologic and technical studies, and for other corporate purposes.
The closing of the deal is expected around March 21, 2012, subject to all necessary regulatory approvals, including that of the TSX Venture Exchange.
New Zealand Energy controls two permits covering 169,949 net acres in the Taranaki Basin. The company achieved production in December 2011 from Copper Moki-1, its first discovery well in the Taranaki Basin, and late last month, announced the start of an extended production test from its Copper Moki-2 well and the start of drilling at its Copper Moki-3 well.
The company also said in February that based on its early operational success in the Taranaki Basin of New Zealand's North Island, it has forecast an exit production rate of 3,000 barrels of oil equivalent (boe) per day for 2012.
The company said the guidance was prepared on the back of production results disclosed that week, as well as the planned drilling of eight net additional wells this year.
The forecast also took into account the completion of a natural gas pipeline, and the "continued performance in line with existing oil and natural gas production" from its Copper Moki-1 and Copper Moki-2 wells.
At the Copper Moki-2 (CM-2) well, it is producing 42.0 degrees of API oil, and is currently flowing at a rate of 1,000 barrels of oil per day, and 820 thousand cubic feet (mcf) of natural gas per day, New Zealand Energy said.

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