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Today's Long term LNG Contract News Looms Large!
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Latest Management Options are priced @ $.24---
that should send a message-
Contact Exploration Inc. Issues Incentive Options
CALGARY, ALBERTA--(Marketwire - March 8, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) announces that it has issued a total of 2,850,000 stock options to employees, executive officers and directors of the Company in accordance with the Company's shareholder approved stock option plan. The stock options are exercisable at a price of $0.24 per share, expire in five years and vest immediately.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Contact will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Contact Exploration Inc.
Steve Harding
President and CEO
(403) 771-1091
(403) 695-3915 (FAX)
sharding@contactexp.com
www.contactexp.com
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April.2013 Presentation~
http://www.contactexp.com/Presentation_2_files/CEX%20Corporate%20PPT%20April%2020.pdf
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Update on JV with Pieridae-
http://www.contactexp.com/Home_files/PressReleaseMarch4.pdf
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Steve Harding, President and Chief Executive Officer
Mr. Harding is President and CEO of Contact Exploration Inc. With 30 years experience, Steve Harding has occupied various senior positions within EnCana Corporation, its predecessor Alberta Energy and Husky Oil and Gas Ltd. (now Husky Energy). His experience includes Vice President Northern Canada and Vice President Alaska/MacKenzie Delta at EnCana and Chief Geoscientist at Husky Energy. Mr. Harding has extensive experience with oil and gas exploration and development within numerous geological basins, both within and outside of North America. Included in his accomplishments is developing the geological model which lead to the discovery of the giant White Rose field, offshore Newfoundland. While at EnCana, Mr. Harding negotiated and secured the largest exploration position in the US and Canadian Arctic, leading to the discovery of the Umiak field and receiving an MMS corporate citizen award for outstanding cultural and environmental efforts in Alaska.
Mr. Harding's Bachelor of Science degree in Geology (Hons) is from McMaster University in Hamilton, Ontario and he earned his Masters degree in Geology at the University of Alberta in Edmonton. He is a professional Geologist with the Association of Professional Engineers, Geologists and Geophysicists of Alberta.
http://www.contactexp.com/Board_of_directors.html
Quite the experienced Board!
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Goldboro LNG Plant-
http://goldborolng.com/
This is our prospective JV Partner's Plant-
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Contact Exploration Announces Participation in New
Acreage and Well; Provides Montney Operations Update
January 29, 2013 (Calgary, Alberta)
Contact Exploration Inc. (“Contact” or the “Company”)
(TSX-V: CEX) is pleased to announce that it will be participating in a new non-operated
Montney well, immediately adjacent to Contact’s existing 25% working interest Kakwa acreage.
The operator advises that drilling of this well is expected to commence in mid-February 2013.
Contact is to pay 23.75% of the costs of drilling and casing this well to earn an average 23.75%
working interest in the Montney Formation in 2.25 gross sections of lands contiguous to
Contact’s existing Kakwa acreage position, subject to a 5% non-convertible gross overriding
royalty on the production from the well. Once earned, Contact will hold 27 gross (12.75 net)
sections of Montney acreage at Kakwa.
The first Contact-operated horizontal Montney well (the "13-17 Well") has been on production
since December 1, 2012. Various capacity bottlenecks associated with downstream processing
restricted December 2012 production from this well. Upon introducing additional condensate
handling equipment at the well site on January 4, 2013, the Company has maintained stable
gross production averaging 3.8mmcf/d and 575bbl/d well head condensate. Contact has a
37.5% working interest in the 13-17 Well, before payout.
Contact’s second operated Montney well (the “14-30 Well”) has been successfully tied into
downstream processing facilities. In January 2013, the 14-30 Well was flowed for only a brief
period, due to the third party gas plant not having capacity for the extremely high levels of free
flowing condensate (in excess of 200bbl/mmcf of natural gas) from the well. Contact’s third
operated Montney well (the “3-19 Well”) is being drilled from the same surface location as the
14-30 Well, with drilling on schedule to be finished in mid-February 2013, with completion
operations anticipated to be finished by mid-March 2013.
Once completion operations on the 3-
19 Well are finished, the Company will equip the 14-30 and 3-19 Wells in similar fashion to the
13-17 Well, such that condensate can be separated at location, allowing for flow of natural gas
from these wells to the third party facility and for condensate to be trucked directly to the sales
point. Contact has a 25% interest in both the 14-30 and 3-19 Wells.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of
operating in Atlantic Canada and has recently demonstrated success in Alberta’s liquids-rich
Montney Formation tight gas play. For more information, please see the Company’s website:
www.contactexp.com
For more information please contact:
Steve Harding
President and CEO
Contact Exploration Inc.
Phone: (403) 771-1091
Fax: (403) 695-3915
Email: sharding@contactexp.com
http://www.contactexp.com/Home.html
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New 52 week high today on Contact Exploration!
http://tmx.quotemedia.com/quote.php?qm_symbol=CEX
http://www.contactexp.com/Presentation_2_files/CEX%20Corporate%20PPT%20December%202012_1.pdf
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Trending the right way...for sure-
Might an update on the New Brunswick Project be close at hand?
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Huge Second Well Completion in Montney!
http://tmx.quotemedia.com/article.php?newsid=55585943&qm_symbol=CEX
Contact Exploration Confirms Repeatability of Kakwa Liquids-Rich Montney Development with Second Successful Well
(TSX-V:CEX)
CALGARY, Nov. 5, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that the second Contact-operated horizontal Montney well (the "14-30 Well") has been successfully completed with a 14 stage water-based nitrogen foam frac. The well was flowed for 96 hours against anticipated gathering system pressure of approximately 1,100psi. During the final 24 hours of flow-back the well averaged gross production rates of 974 bbl/d condensate and 4,970 mcf/d gas, being 1,803 boe/d combined (244 bbl/d and 1,243 mcf/d, or 450 boe/d combined, net to Contact). An additional 4 hour flow test was subsequently conducted to provide insight into the free-flowing initial deliverability of the well, against a final wellhead pressure of 360 psi, which test resulted in gross rates of 1,324 bbl/d condensate and 6,423 mcf/d gas, being 2,394 boe/d combined. The 14-30 Well was drilled ahead of schedule and under budget and completion operations have remained on budget.
The successful drilling and completion of the 14-30 Well confirms that Contact's Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play. Steve Harding, President and CEO of Contact, commented, "Condensate rates from the 14-30 Well are right in line with our expectations given that both the horizontal length of 14-30 Well and its 24 hour production test volumes are approximately 85% of the horizontal length and test rates from our first well at 13-17. However, the 14-30 Well has surpassed our expectations for overall condensate production, having flowed more condensate in its 96 hour production test than did the 13-17 well and demonstrating free-flowing well head condensate yields of 200 bbls/mmcf. The condensate yields from the 14-30 Well will surely enhance the economic returns from this already strongly commercial project."
The 14-30 Well will now be equipped for production and Contact anticipates pipeline connection to the Company's previously built mainline to be finalized by early 2013. The 14-30 Well was designed to allow for the vertical completion and testing of an up-hole Montney target. However, given the success of the horizontal test and the potential risk of compromising wellbore integrity, Contact and its partners have elected not to complete this uphole Montney zone at this time. Contact continues to have confidence in this interval and will plan to test the zone in a future well. The Company is currently permitting a new well from the same surface location as 14-30, and is expecting to spud this well by January 2013.
Contact is also pleased to announce that it has acquired at recent Crown land sales, an additional 8 (eight) 100% working interest sections. These newly acquired lands are on trend with and nearby the Company's original Kakwa sixteen section block that it operates at a 25% working interest. Furthermore, Contact and its partners have acquired ¾ of a section immediately adjacent to the section upon which the 14-30 Well was drilled. With these acquisitions, Contact has added a total of 8.18 net sections of prospective Montney acreage for an average cost of less than $200 per hectare, such that the Company now holds 12.18 net sections prospective for Montney development.
The Company advises that although the initial rates from the 14-30 Well are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the 14-30 Well.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com
ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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Until the specifics of the deal are announced next month-
It remains a guessing game,however,
seeing as how this opens up the trillions of mcfs of natural gas in the New Brunswick leases to development along with implicit operatorship of all future partner leases,I'm thinking a Billion$ market cap here when all is said and done over the next 5+ years as not being too far fetched.
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Very interesting... any idea what this deal would look like or possible share price implications? TIA
The Deal Announced with Pieridae is World Class!
http://www.reuters.com/article/2012/10/24/canada-lng-pieridae-idUSL1E8LOH7P20121024
Oct 24 (Reuters) - Pieridae Energy Canada said on Wednesday it aims to build a C$5 billion ($5 billion) liquefied natural gas export terminal in Nova Scotia, a first for Eastern Canada, with the aim of exporting the fuel to Europe and India.
The proposed facility would have a capacity of 700 million cubic feet a day and be in service in late 2018, said the privately held company which was founded by its current president, Alfred Sorensen. Sorensen sold his last major LNG plan - on the Pacific Coast - to independent energy companies in 2010.
The site on the southeast coast of Nova Scotia is adjacent to the Maritimes & Northeast Pipeline, which carries gas to Atlantic Canada and the northeastern United States from the Sable offshore gas project operated by Exxon Mobil Corp.
Gas from Encana Corp's Deep Panuke natural gas project, which is expected to start up later this year, will also come ashore at the site in the community of Goldboro.
Under current plans, Pieridae plans to start its environmental assessment process before the end of this year with expectations that it would be completed in 2013. An investment decision would be made in 2014, it said.
In a statement, Sorensen said his group had the experience, financial resources and access to supply needed to move such a development forward.
Sorensen founded Galveston LNG, a company that planned an export terminal at Kitimat, British Columbia, in the early days of what is now a rush of plans to build such facilities on the West Coast. It sold out to Apache Corp and EOG Resources , and Encana later signed on as a partner. The project has yet to get a final go-ahead from the partners.
Pieridae said it was in talks with Contact Exploration Inc , a small producer that operates an oil and gas field in New Brunswick, with the aim of having Contact participate in the project and manage the operations. An agreement is expected to be signed in the next month.
The project would create 1,500 jobs during construction and 100 full-time positions, Pieridae said, and has won plaudits from Nova Scotia Premier Darrell Dexter.
"A Goldboro LNG export terminal will greatly contribute to our world-class oil and gas sector and position Nova Scotia as a strategic energy exporter," Dexter said in a statement.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
http://m.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/in-race-to-export-lng-a-new-atlantic-plan/article4634129/?service=mobile
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Contact Exploration Announces Negotiations for New Brunswick Natural Gas Assets
(TSX-V:CEX)
http://tmx.quotemedia.com/article.php?newsid=55263765&qm_symbol=CEX
CALGARY, Oct. 24, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSXV: CEX) is pleased to announce that it is currently negotiating with Pieridae Energy Canada ("Pieridae") a participation and earning agreement (the "Proposed Agreement") respecting Contact's New Brunswick natural gas assets. Pieridae is a Canadian energy infrastructure development company that has announced the development, along with RWE Group (being one of Europe's leading integrated energy companies), of a liquefied natural gas ("LNG") export facility (the "Goldboro LNG Facility") in Goldboro, Nova Scotia, Canada.
In addition to setting forth the framework for the funding and joint development of Contact's New Brunswick natural gas assets, the Proposed Agreement is to contemplate that Contact will exclusively manage the operations of any investment made by the partners in the Goldboro LNG Facility with respect to the exploration and development of all potential Canadian on-shore natural gas for the facility.
As announced by Pieridae, the Goldboro LNG Facility is to include a gas liquefaction plant and facilities for the storage and export of LNG, including a marine jetty for off-loading, and upon completion, is expected to ship approximately five million metric tons of LNG per year and have on-site storage capacity of 420,000 cubic metres of LNG. The Goldboro LNG Facility is to be located adjacent to the Maritimes & Northeast Pipeline, a 1,400-kilometre transmission pipeline system built to transport natural gas between Nova Scotia, Atlantic Canada and the North eastern United States. As announced by Pieridae, the Goldboro LNG Facility project is expected to create significant direct and indirect economic benefits for the local community, Provinces of Nova Scotia and New Brunswick and region, with Pieridae anticipating that, at its peak, the Goldboro LNG Facility will create up to 1,500 jobs during construction and 100 full-time, permanent jobs during operations.
Negotiations between Contact and Pieridae respecting the terms of the Proposed Agreement are ongoing and the Company expects the Proposed Agreement to be finalized within the next four weeks. Contact will provide further details regarding the timing of finalizing and entering into the Proposed Agreement, and the terms and conditions thereof, in due course.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com
http://www.contactexp.com/Hillsborough.html
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Contact Exploration Announces Kakwa Montney Operations Update
(TSX-V:CEX)
CALGARY, Oct. 9, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it has successfully drilled its second horizontal Montney well (the "14-30 Well") to a measured depth of 4,678 metres, including a horizontal leg that remained within the target interval for its entire 1,230 metre length. The 14-30 well was drilled to total depth ("TD") seven days ahead of schedule and under budget, having reached TD 17 days faster than the Company's initial Montney discovery well at 13-17-63-5W6 (the "13-17 Well").
The 14-30 Well has been logged, cased and equipped with a packer-style completion system that will facilitate a fourteen stage nitrogen-based frac with an option to frac an additional prospective interval above the primary target, also within the Montney. Contact is planning to complete and test the well over the next 30 days. With successful test results, the well will be equipped for production and tied-in to the Company's newly constructed gas transportation line by year end. Contact is preparing to drill another well from the same surface location as the 14-30 Well later this winter, and is also in the process of licensing additional locations on its Kakwa acreage.
As previously announced on May 3, 2012, Contact's 13-17 Well (37.5% working interest Contact before payout, 25% after payout) was successfully drilled and completed, demonstrating average gross production rates over the final 24 hours of production testing of 1,150 bbl/d condensate and 8,290 mscf/d gas, being 2,532 boe/d (431 bbl/d and 3,109 mscf/d, or 950 boe/d combined, net to Contact and before payout). The Company has finalized construction of the well site facilities and transportation line, connecting the 13-17 Well to Pembina's Musreau facility. A series of outages at downstream liquids processing facilities in Alberta have caused a delay in the start-up of the 13-17 Well, as new volumes of propane and butane temporarily cannot be accepted at these facilities. Contact is investigating alternative solutions for this short-term restriction and is confident the delay will not affect the overall forecast economics for the project, which remain exceptional due to the strong condensate market and improving natural gas prices.
Contact operates the Deep Basin Montney project and is responsible for 25% of the costs of drilling and completion of the 14-30 Well and of the pipeline tie-in for the 13-17 Well. The Company holds a 25% interest in 16 contiguous sections of lands at Kakwa.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has been aggressively pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation. The Company's philosophy has been to establish core areas, with a focus on liquids-rich hydrocarbon accumulations, realizing growth through increased production and reserve addition.
Historically, Contact was focussed in Atlantic Canada. Current exploration and development activities onshore East Coast include the project areas of Stoney Creek, Hillsborough and Edgett's Landing in New Brunswick and participation through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland.
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Contact Exploration Announces New Well in Deep Basin Montney Project
(TSX-V:CEX)
CALGARY, Aug. 22, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that drilling commenced today on the CEX HZ 14-30-63-5W6 well, being the second well drilled by the Company on its Deep Basin Montney lands at Kakwa. The well is targeting the Montney Formation and is located approximately two miles from the Company's initial Montney well, which tested at greater than 2,500 BOE/d. The new well is programmed for a total drilled length of 4,684 metres, including a horizontal leg of 1,200 meters. Contact operates the well with a 25% working interest. Contact anticipates that the drilling of this well will be finalized by October 2012, with well completion (stimulation and testing) to be completed by November 2012. Additionally, the Company confirms that the pipeline construction to tie-in the Company's initial well in the Kakwa area continues, with anticipated construction completion by late September 2012.
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Montney PowerPoint-
http://www.contactexp.com/Presentation_2_files/CEX%20Montney%20PPT%20%20May%2031_1.pdf
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CXLIF is the U.S. ticker,but Contact CEX trades 95%+ of its shares in Canada-
http://tmx.quotemedia.com/quote.php?qm_symbol=CEX
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CALGARY, CANADA (TSX-V:CEX)
NEWS RELEASE
Contact Exploration Announces Kakwa Montney Test Results of 2,532 boe/d (950 boe/d Net)
May 3, 2012, (Calgary, Alberta) Contact Exploration Inc. (“Contact” or the “Company”) (TSX-V: CEX) is pleased to announce that the Contact operated horizontal Montney well (the "13-17 Well") has been successfully drilled and completed with a 15 stage water-based foam frac. Following a 96 hour frac flow back, the well was still cleaning up, with average gross production rates over the final 24 hours of production testing being 1,150 bbl/d condensate and 8,290 mscf/d gas, being 2,532 boe/d combined (431 bbl/d and 3,109 mscf/d, or 950 boe/d combined, net to Contact and before payout) against a wellhead pressure of 1,100psi. In addition to well head condensate, the gas analysis from the 13-17 Well suggests that an additional 25-35 bbl/mmscf of natural gas liquids are recoverable through typical refrigeration processing, and up to 70 bbl/mmscf if deep cut processing is available. The well is currently being equipped with tubing following which additional clean up of frac water is expected over the next several days. The 13-17 Well was drilled and completed within the expected timelines and on budget.
Contact holds a 37.5% interest (25% after payout) in the 13-17 Well, and holds a 25% working interest in a 16 section contiguous land block offsetting the 13-17 Well, with Contact being operator for the entire block. The successful drilling and completion of the 13-17 Well is a milestone for Contact, establishing what is expected to be a significant new core area for the Company at Kakwa. Surveying and applications have commenced for both tie-in operations as well as for the drilling of a follow-up well. The Company currently anticipates the 13-17 Well to be tied-in by September 2012.
Steve Harding, President and CEO commented, “Contact is very pleased with the successful execution and test results from the 13-17 Well. This productivity test substantially exceeds our expectations for liquids yield and confirms our technical work that had suggested our acreage was in the heart of the liquids-rich Montney trend. This result provides a multi-fold boost to our production capability, on a property that we expect will be capable of producing exceptional volumes with further development. We will continue to be focused on our inventory of liquids-weighted projects, characterized by strong economics.”
The Company advises that although these initial rates are very encouraging, production test results are not necessarily indicative of long-term performance or of ultimate recovery from the well.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate the exploration and development projects in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
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Great News! They Got the Loot!
March 23, 2012, (Calgary, Alberta) Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Private Placement") of $1 million of convertible, redeemable, 8% preferred shares ("Preferred Shares") of the Company. Pursuant to the Private Placement, Contact has issued an aggregate of 1,000 Preferred Shares to an exempt buyer on a private placement basis at a stated value (the "Stated Value") of $1,000 per Preferred Share, for aggregate gross proceeds of $1,000,000.
Holders of the Preferred Shares are entitled to a preferred 8% cumulative dividend payable on the last business day of March, June, September and December in each year, commencing on June 29, 2012. Each Preferred Share is convertible at any time at the option of the holder into common shares ("Common Shares") of the Company at a conversion price of $0.20 per Common Share, such that each Preferred Share is convertible, based on the $1,000 Stated Value thereof, into 5,000 Common Shares. Additionally, the Preferred Shares are redeemable by the Company at any time for the Stated Value thereof plus all declared but unpaid dividends and are retractable by the holder after one year from the date of issue for the Stated Value thereof plus all declared but unpaid dividends.
The Preferred Shares issued in the private placement, and any Common Shares issued on conversion thereof, are subject to a four month hold period under applicable securities laws, which hold period expires on July 23, 2012.
Contact expects to use the proceeds of the Private Placement to fund ongoing operations and capital programs, including a portion of its capital obligations associated with the drilling of the Corporation's previously announced Montney exploratory well in the Kakwa area of Alberta.
About Contact Exploration Inc. Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
For more information please contact:
Steve Harding President and CEO Contact Exploration Inc. Phone: (403) 771-1091 Fax: (403) 695-3915 Email: sharding@contactexp.com www.contactexp.com
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March 14,2012 Update-
http://www.contactexp.com/Home_files/PressReleaseMarch14.pdf
CALGARY, CANADA (TSX-V:CEX)
NEWS RELEASE
Contact Exploration Announces Flow Through Private Placement and Provides Montney Drilling Update
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
March 14, 2012, (Calgary, Alberta) Contact Exploration Inc. (“Contact” or the “Company”) (TSX-V: CEX) is pleased to announce that it has entered into an agreement with MGI Securities Inc. ("MGI") respecting a brokered private placement (the "Flow Through Private Placement") pursuant to which MGI will act as Contact's agent to sell, on a "best efforts" basis, up to 15,384,615 common shares in the capital of the Company to be issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) ("Flow-Through Shares") to exempt buyers on a private placement basis at a price of $0.13 per Flow-Through Share, for aggregate gross proceeds of up to $2 million.
Contact expects to use the proceeds of the Flow Through Private Placement to incur eligible Canadian Exploration Expenses to fund its ongoing capital programs. These qualifying Canadian Exploration Expense expenditures will be renounced to subscribers effective December 31, 2012. The Flow-Through Shares issued pursuant to the Flow Through Private Placement will be subject to a four-month hold period from the closing date, which is anticipated to occur on or about April 5, 2012. The Flow Through Private Placement is subject to approval from the TSX Venture Exchange ("TSXV").
Contact is also negotiating a non-brokered private placement (the "Preferred Share Placement") of up to $1 million of convertible, redeemable, 8% preferred shares to a third party purchaser, which placement remains subject to the completion of final documentation and the approval of the TSXV. Contact expects to finalize the Preferred Share Placement within the next few weeks and will announce further information as terms are finalized.
As previously announced, Contact and its partners are currently drilling a Montney exploratory well in the Kakwa area of Alberta. To date, drilling costs associated with this well remain on budget and intermediate casing is scheduled to be set in the Montney formation within the next week. The well is then programmed to be drilled horizontally for a minimum distance of approximately 1,000 meters, expected to reach total depth in April 2012.
Should Contact successfully close both the Flow Through Private Placement and the Preferred Share Placement for the maximum gross proceeds contemplated, Contact expects to have fully funded its capital obligations associated with the drilling of the Montney well, with $1 million of available cash and an undrawn $2 million credit facility. Contact anticipates finalizing completion operations on this well after Spring break-up.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian
properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
For more information please contact:
Steve Harding
President and CEO
Contact Exploration Inc.
Phone: (403) 771-1091
Fax: (403) 695-3915
Email: sharding@contactexp.com
www.contactexp.com
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Last PR-
December 30, 2011, (Calgary, Alberta) Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Private Placement") of common shares ("Flow-Through Shares") of the Company, issued on a "flow-through" basis pursuant to the Income Tax Act (Canada). Contact issued an aggregate of ??????????Flow-Through Shares in the Private Placement, at a price of $0.13 per Flow-Through Share for aggregate gross proceeds of $1,157,702, inclusive of ??????????Flow-Through Shares that were issued today (for gross proceeds of $147,030) in the final tranche of the Private Placement. In respect of this final tranche, the Company paid a cash finder's fee of $5,250 related to subscriptions for 577,000 of the Flow-Through Shares.
The Flow-Through Shares issued today are subject to a four month hold period under applicable securities laws, which hold period expires on May 1, 2012.
Contact expects to use the proceeds of the Private Placement to incur eligible Canadian Exploration Expenses as part of its ongoing capital programs, including the drilling of a previously announced initial Montney well in the Kakwa area of Alberta, prior to December 31, 2012. These qualifying Canadian Exploration Expense expenditures will be renounced to subscribers effective December 31, 2011.
Additionally, Contact has reached agreement with a third party lender for the provision of a secured, subordinated $1,000,000 loan, which loan will have a one year term and an 8% per annum interest rate. Contact plans to close this debt financing within the next 30 days, to best coincide with the Company's operational activity requirements. The debt financing is subject to approval from the TSX Venture Exchange.
About Contact Exploration Inc. Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
For more information please contact:
Steve Harding President and CEO Contact Exploration Inc. Phone: (403) 771-1091 Fax: (403) 695-3915 Email: sharding@contactexp.com www.contactexp.com
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I will be working on this board asap to provide you updated info.
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