FINANCING / Talon Petroleums Ltd. Private Placement & Activity Report
CALGARY, AB--
Private Placement
Talon Petroleums Ltd., ("Talon") announces a financing of up to
$1,500,000 by the issuance of 3,000,000 flow through common
shares at a price of $0.50 per flow through common share. CIBC
Wood Gundy ("the Agent") will be acting as agent and will be
placing the securities on a best efforts basis. The Agent will
receive a commission of 7% of the gross proceeds received from
the sale of the Common shares. In addition, Talon has agreed to
grant the Agent that number of non-transferrable broker warrants
equal to 10% of the common shares issued pursuant to the offering
up to 300,000 broker warrants, which will be exercisable for one
(1) year following closing, at a price of $0.50 per broker
warrant. The closing of this private placement is expected to
occur before the end of December, 1998. The proceeds from the
offering are intended to be used in Talon's drilling activities
in its two core areas in the Peace River Arch and Rainbow areas
of Alberta.
Activity Update
Since Talon's press release on November 6, 1998 additional
activities have been commenced in our core areas. The second
well drilled in the Pouce Coupe area has now been completed,
frac'd and initially flow tested at commercial rates in a zone
not previously assigned reserves, resulting in a new pool
discovery. Final test information is being obtained and plans
for tie-in of this well along with the initial discovery well
continue to be on track for December, 1998. On November 25,
1998, Talon and its partner have commenced the drilling of an
offset well (Talon 50%) to the initial discovery well and results
are expected within the next few weeks. Gas reserves in 3 to 4
zones could be encountered in this offset well. Talon has also
secured a 33% working interest in an additional eight (8)
sections of land on trend and contiguous to the initial discovery
wells, bringing our total land position in the Pouce Coupe area
to 30.5 sections with working interests ranging from 15 to 50%,
(average 32.3%) and plans to drill additional wells are
progressing.
The planned horizontal well at Rainbow (Keg River 40 degree oil
potential) commenced drilling on November 22, 1998, and is
expected to take 3 weeks for results to be realized. Talon holds
a 20% interest in this horizontal well which offsets a previously
drilled and currently producing Keg River horizontal oil well. |
