Petrobank Announces Increase in Bitumen-In-Place and Bought Deal Financing
Mon Mar 19, 8:27 AM
Email Story IM Story Printable View
CALGARY, ALBERTA--(CCNMatthews - March 19, 2007) - Petrobank Energy and Resources Ltd. (TSX: PBG.TO) (OSLO: PBG) ("Petrobank") is pleased to announce an additional increase in the McDaniel and Associates Consultants Ltd. estimated gross discovered resources of bitumen-in-place on our oil sands leases to 2.6 billion barrels. This represents a 400 million barrel increase over the preliminary estimate announced on March 13, 2007 and a 1.0 billion barrel increase from the 1.6 billion barrels announced in May 2006. This increase does not change the reserves and contingent resource estimates, summarized below, but does indicate the significant potential to add additional recoverable volumes through exploitation using the THAI(TM) process.
Petrobank is also pleased to announce that it has entered into an agreement with a syndicate of investment dealers, led by Haywood Securities Inc. and including TD Securities Inc., FirstEnergy Capital Corp., and Fraser MacKenzie Ltd. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, an aggregate of 4,000,000 common shares (the "Common Shares") of Petrobank at a price of $21.00 per Common Share resulting in gross proceeds of $84.0 million (the "Offering"). Petrobank will use the proceeds of the Offering initially for the repayment of debt and for general corporate purposes.
The Offering is subject to certain conditions including standard regulatory approvals. The Common Shares will be offered in all the provinces of Canada, other than Quebec, by way of a short form prospectus. Closing is anticipated to occur on or about April 5, 2007.
Paul Litman: "Avoid panic selling & avoid overconfident buying."
