Firm has two rigs drilling near MT border in Alberta Bakken
The Company has also granted the underwriters an over-allotment option to increase the size of the Offering by purchasing from treasury up to an additional 450,000 Common Shares on the same terms, exercisable in whole or in part at any time prior to 30 days after the closing of the Offering. If the over-allotment option is exercised in full, the aggregate size of the Offering, would be approximately $75 million.
Proceeds of the offering will initially be used to reduce bank indebtedness thereby freeing up additional borrowing capacity to fund a portion of the Corporation’s ongoing capital expenditure program with the Flow-Through Common Share proceeds used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before December 31, 2014.
Closing of the Offering is anticipated to occur on or about May 27, 2014 (the “Closing Date”) and is subject to the receipt of applicable regulatory approvals, including approval of the Toronto Stock Exchange.
The Common Shares and the Flow-Through Common Shares will be offered in each of the provinces of Canada other than Québec by way of a short form prospectus. The Common Shares will also be offered for sale in the United States on a private placement basis pursuant to exemptions from the registration requirements pursuant to Rule 144A and/or Regulation D of the United States Securities Act of 1933, as amended, in a manner that does not require the Common Shares to be registered in the United States and internationally, pursuant to applicable securities laws.
Lethbridge Alberta Bakken
The Company currently has two rigs drilling wells on its Lethbridge Alberta Bakken property with two wells drilled and completed this quarter and two additional wells in the latter stages of drilling the horizontal production legs. Operations on this property have not been delayed due to spring break up conditions in the area. The Company looks forward to updating progress from this development drilling in the future.
The Company has recently significantly expanded its land position in this core area by acquiring rights to more than 70 additional sections that are believed to include both lower risk development and exploration opportunities.
Acquisition highlights include an agreement with a senior producer pursuant to which DeeThree may earn a 100% working interest in up to 34.5 contiguous sections (22,080 acres) of land located directly on trend and between existing DeeThree production within its Lethbridge Alberta Bakken property. A map of these lands is attached to this news release and may also be viewed on DeeThree’s website atwww.deethree.ca. In consideration, DeeThree has committed to drill one vertical well and one horizontal well by the third quarter of 2014. DeeThree has the right to acquire any lands which are not earned by the third quarter of 2014 in exchange for a cash payment and a further drilling commitment.
-DeeThree press release