Proceeds will help company acquire Viking Oil asset for C$2.8 million
By Devika Patel
Knoxville, Tenn., Dec. 8 - Magnum Energy Inc. said it will not proceed with the units portion of a non-brokered private placement that priced Nov. 15. It still plans to proceed with a revised version of the shares placement, which priced the same day and will now raise C$1 million.
The company will now sell 3,448,276 flow-through common shares at C$0.29 each for C$1 million. The price per share reflects a 7.41% premium to the Nov. 12 closing share price of C$0.27.
The shares originally were priced at C$0.33 apiece, a 22.22% premium to the Nov. 12 price.
Proceeds will be used for the company's planned acquisition of the Viking Oil asset from a private company for C$2.8 million, the drilling of horizontal wells in the Viking Oil asset, potential land acquisitions and general working capital.
The company that owns the Viking Oil asset is producing about 30 barrels of sweet light crude per day from its vertical wells situated on 3.25 sections of largely undeveloped land. The infrastructure includes a battery, disposal well and pipelines.
Based in Vancouver, B.C., Magnum Energy is a junior oil and gas exploration company operating in the Western Canadian Sedimentary Basin.
| Issuer: | Magnum Energy Inc.
|
| Issue: | Flow-through common shares
|
| Amount: | C$1 million
|
| Shares: | 3,448,276
|
| Price: | C$0.29
|
| Warrants: | No
|
| Agents: | Non-brokered
|
| Pricing date: | Nov. 15
|
| Revised: | Dec. 8
|
| Stock symbol: | TSX Venture: MEN
|
| Stock price: | C$0.27 at close Nov. 12
|
| Market capitalization: | C$7.67 million
|
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