Nextraction Announces Closing of $2.5 Million Brokered Private PlacementMarch 24, 2011
NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE USA
Vancouver, BC - Nextraction Energy Corporation (TSX-V: NE) ("Nextraction" or the "Company") is pleased to announce the successful completion today of a bought deal financing (see news releases dated March 1 and 4, 2011) for 1,157,400 units ("Units") of the Company at a price of $2.16 per Unit (the "Offering") for aggregate gross proceeds to the Company of $2,499,984. Each Unit consists of one common share in the capital of the Company priced at $1.0005 each and one common share in the capital of the Company issued on a "flow-through" basis under the Income Tax Act (Canada) priced at $1.1595 each. NCP Northland Capital Partners Inc. ("Northland") acted as underwriter for this placement and has received a commission of 6.0% of the gross proceeds.
All of the shares issued in this placement will be subject to a four month resale restriction from the date of closing of March 24, 2011.
For further information regarding the financing press releases, please refer to Nextraction's press releases dated February 16, 2011, March 1, 2011 and March 4, 2011.
The net proceeds from the Offering will be used for development of the Company's newly acquired Provost property, which includes the acquisition of four producing light oil wells and the drilling of two horizontal wells this summer. The proceeds will also be for general working capital purposes.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas producing company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves and plays 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 has offices in Vancouver, BC, Calgary, Alberta and Golden, Colorado. In addition to the Provost field, Nextraction has current gas production and is currently developing a multi- well tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, a Chattanooga shale gas resource play in eastern Kentucky/Tennessee, and is conducting seismic operations with the intent of commencing exploration efforts for Bakken oil in the Williston Basin.
FORWARD LOOKING STATEMENTS DISCLAIMER
Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
Such forward-looking statements or information include, without limitation, statements or information about the Company's use of proceeds from the Company's equity financings, business strategy and goals, our future capital and other expenditures and requirements. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the intended use of proceeds from the Company's equity financings. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
Neither TSX Venture Exchange nor its Regulation< Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information on behalf of Nextraction Energy Corp, please contact:
Nextraction Energy Corp.
Toll Free: 1-888-630-0370