Xtreme Coil prices C$54.6 million stock offering; Open Range Energy arranges C$10 million issue

By Sheri Kasprzak

New York, Jan. 30 - Two Canadian companies led private placement news on Tuesday as activity in the United States remained light.

The energy-related offerings come as oil prices took off, gaining $2.96 to close the session at $56.97 per barrel, bolstered by cold winter weather, after dropping on Monday.

Xtreme Coil Drilling Corp. topped headlines with a C$54.6 million offering of shares it priced Tuesday and later upsized from C$50.4 million.

The resized placement includes up to 5.2 million shares at C$10.50 each, a 1.9% discount to the company's C$10.70 closing stock price from Monday.

The offering priced Tuesday morning as including 4.8 million shares and was upsized in the afternoon.

Insiders may subscribe for up to 140,000 of the shares.

Peters & Co. Ltd. is the underwriter for the offering, which is set to close Feb. 15.

Xtreme's stock advanced by 2.8%, or 30 cents, Tuesday to close at C$11.00 (Toronto: XDC). Volume was also elevated with 91,180 shares traded compared with the average 30,501 shares.

Proceeds will be used for an increase in the company's 2007 capital expenditure program and for working capital.

Xtreme is no stranger to the private placement market. The company sold C$10,275,485 in shares at C$10.90 each back in December to Shell Technology Ventures BV. In February 2006, the company sold 5.8 million shares at C$7.00 each for C$40.6 million in proceeds as part of its amalgamation with Norquay Capital Ltd.

Calgary, Alta.-based Xtreme Coil develops and builds drilling rigs.

Oil prices scare off issuers

In the broader market, a sellsider said issuers may be avoiding pricing offerings right now as oil prices climbed more than $2.00 per barrel Tuesday.

"Stocks don't appear to be too upset by it," he said, "but we'll see what things look like tomorrow. I really think [issuers] are standing back because stocks may take a beating."

Even so, there were several oil-related offerings announced Tuesday north of the border as well as a sizable deal from a mineral exploration company.

Open Range prices C$10 million deal

In oil-related offerings, Open Range Energy Corp. priced a C$10 million offering of flow-through shares.

The deal includes up to 2.5 million shares at C$4.00 apiece.

The placement is being completed through a syndicate of underwriters led by Sprott Securities Inc. The syndicate has a greenshoe for up to 500,000 additional shares.

The offering is slated to close Feb. 22, and proceeds will be used for exploration.

The company's stock gave up 2.52%, or 8 cents, Tuesday to close at C$3.09 (Toronto: ONR).

Calgary's Open Range is an oil and natural gas explorer.

Sharon stock jumps

Another oil exploration company, Sharon Energy Ltd., negotiated the terms of a C$5 million placement of unsecured subordinated convertible debentures. Word of the deal sent the company's stock skyrocketing by 11.43%.

The 9.75% five-year debentures are convertible into common shares at C$0.50 each.

Placement agent Research Capital Corp. has a greenshoe for up to C$3 million in additional principal of the debentures.

The deal is slated to close Feb. 28.

On Tuesday, the company's stock gained 4 cents to close at C$0.39 (TSX Venture: SHY). The gains started early with the stock advancing by the full 11.43%, by 9:30 a.m. ET.

Proceeds will be used for exploration and development in the United States and Canada.

Sharon Energy last tapped the PIPE market back in December 2005 when the company sold C$6 million in units of one share and one half-share warrant at C$0.50 each.

Sharon, also based in Calgary, is an oil and natural gas exploration and production company focused on properties in central and southern Alberta and Texas.

Continental's offering

In the resources sector, Continental Minerals Corp. priced a C$19.965 million offering of 12.1 million units.

The units - of one share and one warrant - are offered at C$1.65 each.

The warrants associated with the deal are exercisable at C$1.80 each for one year.

Proceeds will be used to complete the Xietongmen feasibility study, the environmental impact assessment and the 10,000-meter exploration drill program to define the size of the Newtongmen discovery. The rest will be used for working capital.

Continental's stock sank by 8 cents, or 4.55%, to end at C$1.68 (TSX Venture: KMK).

Vancouver, BC.-based Continental is a mineral exploration company.

Capital Gold stock closes down

Elsewhere in the resources sector, Capital Gold Corp.'s stock dropped on Tuesday after the company sealed a $3,768,500 placement of shares.

The company's stock gave up 1.23%, or half a penny, to end at $0.40 Tuesday. On Monday, the stock also lost half a penny to close at $0.405 (OTCBB: CGLD).

In its placement, Capital issued shares at $0.30 each to nine investors.

New York-based Capital Gold is a gold exploration company.

Icagen stock dips

In other secondary market news, Icagen, Inc. watched its stock fall slightly on Tuesday, a day after the company announced the imminent closing of a $12.868 million stock deal.

The stock fell by 2 cents, or 1.41%, to settle at $1.41 (Nasdaq: ICGN). The stock gained 5.23%, or 7.23 cents, Monday when the offering was announced to close at $1.43.

In the placement, the company intends to sell shares at $1.42 each to Greenway Capital, QVT, Venrock Associates, Alta Partners and an affiliate of Quintiles Transnational Corp.

The offering is set to close Feb. 2.

Proceeds will be used for research and development programs and general corporate purposes.

Based in Research Triangle Park, N.C., Icagen develops small molecule drugs used to treat sickle cell disease, atrial fibrillation, epilepsy and Alzheimer's disease.

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