Vero Energy Inc. (TSX:VRO) and TORC Oil & Gas Ltd. announce that TORC has agreed with the underwriters for its bought-deal, private placement announced in connection with the proposed combination of Vero and TORC to increase the size of the offering from 28,850,000 subscription receipts to 30,800,000 subscription receipts at a price of $2.60 per subscription receipt for gross proceeds of $80,080,000 and from 8,065,000 flow-through subscription receipts to 12,910,000 flow-through subscription receipts at a price of $3.10 per flow-through subscription receipt for gross proceeds of $40,021,000.
The subscription receipts and flow-through subscription receipts together, will raise gross proceeds of $120,101,000.
TORC will grant the underwriters an option to purchase from treasury an additional 4,620,000 subscription receipts, on the same terms, exercisable in whole or in part at any time up to 48 hours prior to the transaction closing. Closing of the TORC financing is expected to occur on or about Oct. 4, 2012.
The net proceeds from the subscription receipts will be used to fund ongoing capital expenditures and for general corporate purposes and the proceeds from the flow-through subscription receipts financing will be used to incur Canadian exploration expense for purposes of the Income Tax Act.
The gross proceeds from the TORC Financing will be held in escrow pending the receipt by escrow agent and Macquarie Capital of a joint notice of TORC and Vero that all conditions precedent to the completion of the transaction have been satisfied or waived.
Recommended Reading
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
NOV Announces $1B Repurchase Program, Ups Dividend
2024-04-26 - NOV expects to increase its quarterly cash dividend on its common stock by 50% to $0.075 per share from $0.05 per share.
Initiative Equity Partners Acquires Equity in Renewable Firm ArtIn Energy
2024-04-26 - Initiative Equity Partners is taking steps to accelerate deployment of renewable energy globally, including in North America.
Repsol to Drop Marcellus Rig in June
2024-04-26 - Spain’s Repsol plans to drop its Marcellus Shale rig in June and reduce capex in the play due to the current U.S. gas price environment, CEO Josu Jon Imaz told analysts during a quarterly webcast.
Ithaca Deal ‘Ticks All the Boxes,’ Eni’s CFO Says
2024-04-26 - Eni’s deal to acquire Ithaca Energy marks a “strategic move to significantly strengthen its presence” on the U.K. Continental Shelf and “ticks all of the boxes” for the Italian energy company.