Nextraction Announces $6 Million Non-brokered Private Placement to Develop Viking Oil PropertyFebruary 16, 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") intends to issue, through a non-brokered private placement, up to 5,587,412 units ("Units") of the Company at a price of $1.0743 per Unit (the "Offering"). Each Unit will consist of one common share (a "Common Share") in the capital of the Corporation and one Common Share (a "Flow-though Share") issued on a "flow-through" basis under the Income Tax Act (Canada). Each Flow-through Share will consist of 0.2973 of a Flow-through Share, which will qualify as "Canadian Development Expenses", as defined in the Income Tax Act (Canada), priced at $1.10 per share ("CDE Shares") and 0.7027 of a Flow-through Share, which will qualify as "Canadian Exploration Expenses", as defined in the Income Tax Act (Canada), priced at $1.30 per share ("CEE Shares"). Assuming that the maximum number of Units is subscribed for, the Offering will consist of: (a) 3,000,000 Common Shares; (b) 1,818,182 CDE Shares; and 769,230 CEE Shares.
Proceeds from the Offering will be used for the exploration and development of the Viking "A" Oil formation on the Company's property interests located within the defined pool of the Provost field in Eastern Alberta (please see Nextraction's news release dated February 3, 2011 for further details). The Company intends to acquire additional properties in the project area, re-complete existing wells to increase production rates and drill and complete two horizontal wells. Nextraction will apply its knowledge and experience in the area and in well completions to conduct horizontal drilling and multi-stage fracs with the objective to achieve substantially improved recovery rates versus historical results in this field.
The Provost Field is a prolific oil producing field where vertical wells have produced up to 300,000 barrels per well. The Viking "A" pool has an estimated 80 million barrels of oil in place (as identified in a reserves study performed by McDaniel Consultants in 1968) with only 3 million barrels of recorded oil produced by various operators to date. The Company's leased property accounts for approximately 15% of the lands covered in the defined pool.
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 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.
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For further information on behalf of Nextraction Energy Corp, please contact:
Nextraction Energy Corp.
Toll Free: 1-888-630-0370