FINANCING / Dundee Announces Closing of Flow-Through Share Private Placement
CALGARY, Jan. 7 /CNW/ - Dundee Petroleum Corp. is pleased to report that
its private placement of ''flow-through'' common shares has closed effective
December 31, 1998.
In December, 1998, Dundee issued 866,667 common shares for proceeds of
$260,000. This issuance brings the total for the private placement to
1,816,667 common shares at $0.30 per share for proceeds of $545,000.
As a result of the private placement, at December 31, 1998, the Company
had 13,719,001 common shares outstanding.
The proceeds from this equity placement will be used for shallow gas
development drilling at Cessford, Alberta. As previously announced, Dundee,
has reached an agreement to purchase shallow gas rights in approximately
64,000 gross (19,200 net) acres of land directly adjacent to the Company's
existing acreage. Dundee currently has 36 gross (10.8 net) producing gas wells
at Cessford and with this purchase will increase its total land position to
approximately 120 gross (36 net) sections. The company will hold a 30%
working interest and expects to drill up to a minimum of 40 gross (12 net)
wells at Cessford in 1999.
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