CrownJoule Closes $10 Million Initial Public Offering
CALGARY, Alberta–(BUSINESS WIRE)–June 25, 1997–CrownJoule Exploration Ltd. (TSE:CJE. CJE.WT. ) (“CrownJoule”) announced today that CrownJoule closed its offering of 5,405,406 Units at $1.85 for each Unit, each Unit is comprised of one Common Share and one-half of one Common Share Purchase Warrant for gross proceeds of $10,000,000. Each whole Purchase Warrant together with the payment of $2.25 will entitle the holder thereof to purchase one Common Share at any time until March 16, 1999. Jennings Capital Inc., Midland Walwyn Capital Inc., FirstEnergy Capital Corp. and Research Capital Corporation acted as agents for the offering. The offering was fully subscribed.
CrownJoule has also qualified for distribution of 2,675,500 Common Shares and 1,337,750 Purchase Warrants issuable upon the exercise of 2,675,000 outstanding Series A Special Warrants as well as 736,933 Common Shares and 368,467 Purchase Warrants issuable upon the exercise of 736,933 outstanding Series B Special Warrants. No further proceeds will be realized pursuant to the exercise of the Series A and Series B Special Warrants, except those proceeds to be received upon exercise of the Common Share Purchase Warrants. Each whole Purchase Warrant received upon the exercise of the Series A and Series B Warrants along with the payment of $2.25 entitles the holder thereof to purchase one additional Common Share at any time until March 16, 1999.
CrownJoule is a Calgary based oil and gas exploration and production company with significant ownership in natural gas production, infrastructure and undeveloped acreage in the Doris Area of Alberta, 150 km Northwest of Edmonton. Since completing its major acquisition in February, 1997, CrownJoule has drilled and cased for production six gas wells in its core area. A further 10-12 wells are planned in the area through the summer and winter drilling seasons.
In addition to its interest in the existing 18 MMCF/d Doris gas plant, CrownJoule is participating in building a further 18 MMCF/d plant in the area which is scheduled for completion in September, 1997. Gross raw gas production from the expanded capacity in the area will be 36 MMCF/d (net 12MMCF/d CrownJoule). CrownJoule’s current production is approximately 6.5 MMCF/d and has an undeveloped land base of over 120,000 gross acres (30,000 net).
Proceeds of the offering will be used to reduce CrownJoule’s indebtedness under existing credit facilities which will then be drawn upon for further oil and gas exploration and development activities. The total capital expenditure program for 1997, excluding the initial acquisition, is projected to be approximately $5 million.
CrownJoule is an oil and gas exploration company whose Common Shares and Purchase Warrants are traded on The Toronto Stock Exchange under the trading symbols “CJE” and “CJE.WT” respectively. -0-
Note to Editors: The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
CONTACT: CrownJoule Exploration Ltd.
George T. Wilson, 403/233-0800
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