CALGARY,
AB, March 18, 2022 /CNW/ - Journey Energy Inc.
(TSX: JOY) (OTCQX: JRNGF ) ("Journey" or the
"Company") is pleased to announce it has closed the bought
deal flow-through share financing that was previously announced on
February 28, 2022. The full 15%
over-allotment was exercised bringing the total equity issuance to
2,852,000 flow-through common shares at a price of $4.25 per share for total gross proceeds of
$12,121,000. Acumen Capital Finance
Partners Limited acted as the sole underwriter for the
offering.
Journey will use proceeds from the Offering to incur eligible
Canadian Development Expenditures ("CDE") within the meaning of the
Income Tax Act in an aggregate amount of not less than the gross
proceeds raised from the Offering and will renounce qualifying
expenditures to purchasers of the Flow-Through Shares on or
before December 31, 2022. The Corporation's current
capital expenditure plan for the year ending December 31, 2022 is to spend approximately
$43 million, including the drilling
of 15 (14.7 net) wells, which are comprised of: 11 (10.7 net) wells
targeting light oil; three (3.0 net) wells targeting heavy oil; and
one (1.0 net) well targeting conventional natural gas. The
net proceeds of the equity issuance, plus additional cash flow from
operations will be used to fund drilling of the 15 wells.
The Flow-Through Shares have not been registered under the U.S.
Securities Act or any U.S. state securities laws, and may not be
offered or sold in the United States or to, or for the
account or benefit of, United States persons absent
registration or any applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws.
About the Company
Journey is a Canadian
exploration and production company focused on conventional,
oil-weighted operations in western Canada. Journey's strategy is to grow its
production base by drilling on its existing core lands,
implementing water flood projects, and executing on accretive
acquisitions. Journey seeks to optimize its legacy oil pools on
existing lands through the application of best practices in
horizontal drilling and, where feasible, with water
floods.
FORWARD LOOKING STATEMENTS:
This press release
contains forward-looking statements. The use of any of the words
"anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe" and similar expressions are intended
to identify forward-looking statements. These statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results or events to differ materially from those
anticipated in such forward-looking statements. More
particularly, this press release contains statements with respect
to closing of the Offering, the use of proceeds of the Offering,
the tax treatment of the Flow-Through Shares and the timing of the
renunciation of the development expenses.
The forward-looking statements are based on certain key
expectations and assumptions made by Journey. Although Journey
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because
Journey can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, risks associated with the
condition of the global economy, including trade, public health
(including the impact of COVID-19) and other geopolitical risks;
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks); commodity price and exchange rate
fluctuations and constraint in the availability of services,
adverse weather or break-up conditions; uncertainties resulting
from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures.
Certain of these risks are set out in more detail in Journey's AIF
dated March 23, 2021 and in Journey's MD&A for the
period ended September 30, 2021, both of which have been filed
on SEDAR and can be accessed at www.sedar.com .
The forward-looking statements contained in this press release
are made as of the date hereof and Journey undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
SOURCE Journey Energy Inc.