CANADIAN OILPATCH / FINANCIAL
New Public Offering In Works
CAVELL ENERGY CORPORATION is pleased to announce that it has
filed a final prospectus in all provinces of Canada relating to the initial
public offering of its common shares. Pursuant to an underwriting
agreement among Cavell, a group of selling shareholders and an
underwriting group led by ScotiaMcLeod Inc. and including First
Marathon Securities Limited, Midland Walwyn Capital Inc. and Peters
& Co. Ltd., Cavell has agreed to sell 7,000,000 common shares at
$2.85 per share and the selling shareholders have agreed to sell
2,364,790 common shares at $2.85 per share for total gross proceeds
of $26,689,651 before exercise of a 10% underwriters' over-allotment
option.
Cavell expects its share of the net proceeds of the offering, after
deducting expenses of the offering, to be approximately $18,200,000.
These proceeds will be used to finance the corporation's seismic and
drilling programs for exploration and development of its properties, to
finance land acquisitions, to expand production facilities and for
working capital.
Cavell is engaged in the business of oil and natural gas exploration,
development and production. Cavell's oil-producing properties are
located in south-east Saskatchewan and its exploration properties are
located in south-east Saskatchewan and in northern North Dakota.
Cavell's oil production averaged approximately 2,200 barrels per day
for the first seven months of 1996.
The offering is expected to close on October 31, 1996. Cavell's
common shares have been conditionally approved for listing on The
Toronto Stock Exchange.
For further information: about Cavell Energy Corporation, please
contact Murray McCartney, President and Chief Executive Officer; or
Arthur Madden, Vice-president Finance and Chief Financial Officer:
by telephone (403) 269-8337, by fax (403) 264-1627 or by mail
Suite 1200, 500-4 Avenue S.W., Calgary, Alberta T2P 2V6 |
