Nextraction Announces Closing of Private Placement
November 19, 2009Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced today that it has closed $2.8 million of its previously announced non-brokered private placement.
Mark S. Dolar, President of Nextraction said "We are pleased to complete our first funding round as a new Oil and Gas Company with a core of solid investors. The funds raised will allow us to make the necessary deposit to our partner and operator, Vantage Energy Green River, LLC, for the drilling costs of the Noble 6-24 well located on the Pinedale Anticline. The drilling of this well will commence in early 2010. This financing, along with our current working capital, allows us to advance our company into the development stage of our current projects, and further our plans for a very exciting 2010."
Mr. Dolar added "Using current working capital, we are mobilizing to commence our drilling program in Eastern Kentucky to develop a multi-formation play including the non-conventional gas resources of the Devonian "Chattanooga" shale and the shallower conventional Big Lime and Knifely formations, all at depths less than 800 meters." The Company plans to spend $450,000 (US) to drill and complete two vertical wells in December 2009 which will test the proof of concept for the play. The Company then plans to drill horizontal wells into the Chattanooga shale, at an approximate completion cost of $800,000 each, to determine if the shale play can be developed more economically as a vertical or horizontal play.
Under this closing, the Company has issued 3,762,000 units at a price of $0.75 per unit for aggregate gross proceeds to the Company of $2,821,500. 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 $0.95 per share, for a period of 12 months from today. The securities will be subject to a four-month hold period under applicable securities laws. The Company has paid finder's fees in the aggregate amount of $85,455 to certain qualified registrants assisting in the private placement (representing 6% of the gross proceeds raised by such finders).
The private placement remains subject to the final approval of the TSX Venture Exchange.
Nextraction Energy Corp. is a Canadian junior oil and gas company focused on projects where the Company can utilize its technical expertise to develop oil and gas in areas of high reserve potential. The Company has offices in Vancouver, BC, Canada.
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, statements or information about the anticipated benefits resulting from the Farmout and Joint Venture Agreement, our business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. 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 accuracy of recovery rates and production in surrounding areas. 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.
Although we have attempted to identify factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performances, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. As actual results and future events could differ materially from those anticipated in such statements and information, readers should not place undue reliance on forward-looking statements or information. The forward-looking statements and information contained in this press release are made as of the date of this press release and, except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. All forward-looking statements and information made herein are qualified by this cautionary statement. Interested parties are invited to have an independent review of the projections contained herein for concurrence and accuracy.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information on behalf of Nextraction Energy Corp, please contact:
Mark S. Dolar , President and CEO
Website: www.nextraction.com
Phone: (604) 488-3633
Cell: (801) 502-5085
