Nextraction Energy Announces Private PlacementMarch 17, 2010
Vancouver, BC - Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced today that it intends to carry out a non-brokered private placement of 3,000,000 units at a price of $1.00 per unit for aggregate gross proceeds to the Company of $3,000,000. Each unit consists of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share at a price of $1.25 per share, for a period of 12 months following the closing of the private placement. The securities will be subject to a four-month hold period under applicable securities laws.
The closing of the private placement is expected to be on March 29, 2010, subject to the receipt of all necessary regulatory approvals. The proceeds from the private placement will be used to finance the completion of the Company's Noble 6-24 well in the Pinedale Anticline field in Sublette County, Wyoming.
Recent independent and internal analysis of the logs from the Noble 6-24 well indicate an investment of $ 2.5MM to $ 3MM is proposed to complete the well. The Noble 6- 24 was drilled by Nextraction and their partner, Vantage Energy Green River LLC ("Vantage"), to a depth of 4,543.34 meters (14,906 feet) and production casing was set mid-February 2010. Vantage is the operator on the project and has extensive experience in the Pinedale Anticline. Nextraction will receive 100% of the proceeds from Noble 6-24 and the next well drilled until 150% of payout, at which time interests will become 73.75% for Nextraction and 26.25% for Vantage. For further details of the agreement between Nextraction and Vantage, see the press release dated October 8, 2009. The Nextraction/Vantage leasehold covers 2,511 acres and has significant expansion and growth potential, particularly now with the confirmation of the targeted horizons in Noble 6-24. Currently, Nextraction/Vantage has the potential to drill up to 60 well locations on 20 acre spacing.
In addition to developing its leases in the Pinedale Anticline, Nextraction is also advancing a 70,000 acre unconventional shale gas resource play in the Appalachian Basin, near the Kentucky and Tennessee border. The Company commenced drilling its first Proof of Concept well on March 10 (see news release dated March 11, 2010) and as of this date is currently drilling with total depth expected by March 19. After reaching TD, log evaluation will be completed for both the uphole conventional target zones (secondary targets) and the primary target, the Chattanooga Shale. Nextraction is already planning to set casing within the primary target zone in anticipation of completion activities.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company is headquartered in Vancouver, BC, Canada, and is currently developing a tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, and a large Chattanooga shale gas resource play in Eastern Kentucky and Tennessee.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
FORWARD LOOKING STATEMENTS DISCLAIMER
This news release contains certain forward-looking statements, which may include assumptions with respect to (i) production; (ii) future capital expenditures; (iii) funds from operations; (iv) cash flow; and (v) financings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Nextraction's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Nextraction's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, that Nextraction will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Nextraction or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Nextraction does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulations Services Provider have reviewed this release and does not accept responsibility for the adequacy or accuracy of this release.
For further information on behalf of Nextraction Energy Corp, please contact: