Nextraction Announces Non-Brokered Private PlacementOctober 20, 2011
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Calgary, AB- Nextraction Energy Corp. (TSX-V: NE) (the “Company”) announces that it intends to issue, through a non-brokered private placement (the “Private Placement”), up to 3,333,333 units (“Units”) at a price of $0.30 per Unit for aggregate gross proceeds of up to $1,000,000. Each unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half of one non-transferable Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant will entitle its holder to purchase one additional Common Share (a “Warrant Share”) at a price of $0.40 for a period of twelve months following the date of closing. The Company may pay finder’s fees of up to 6% of the aggregate proceeds of the issue.
The closing of the Private Placement is expected to be on or about October 28, 2011, subject to the receipt of all necessary regulatory approvals. Net proceeds from the Private Placement will be used for further development of the Company’s Viking light oil prospects in the Provost Pool of south eastern Alberta. The Company recently announced the successful completion of its first horizontal well in the Provost Field (see news release dated October 6, 2011).
The Common Shares, Warrants and Warrant Shares issued or issuable under the Private Placement will be subject to a four month hold period.
Nextraction has a right to acquire a 50% working interest in 4.25 sections in the Provost Pool area, and owns a 100% working interest in 1.0 additional section in the same project area.
In addition to developing the Provost light oil pool, the Company is also in production at its Pinedale Anticline resource play in Wyoming and is evaluating horizontal shale gas development on its lands in the southern Appalachian Basin of the eastern United States.
This news release does not constitute an offer to sell or a solicitation to buy securities in the United States. The securities described herein have not been and will not be registered under the United States Act of 1933, as amended, and may not be sold in the United States or to the benefit of a U.S. person absent and exemption from the registration requirements of such Act.
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 natural gas company engaged in the exploration and development of oil and natural gas resources in North America. The Company’s model is the “next round of extraction on known plays.” Nextraction targets projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects. In addition to the Provost pool, the Company is producing light oil and liquids rich gas at its Pinedale Anticline property in Wyoming. The Company also owns rights to develop shale gas in the southern Appalachian Basin of the eastern United States.
For further information on behalf of Nextraction Energy Corp., please contact:
Mark S. Dolar
President and Chief Executive Officer
Nextraction Energy Corp.
Toll Free: 1-888-630-0370
Certain statements made and information contained herein may constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities legislation. These statements relate to future events or the Company’s future performance. 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”, “may have”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Although 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. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.
Neither the 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.