Dundee Energy Limited Announces Proposed $10 Million Rights Offering
30 October 2012 - 12:09AM
Marketwired
Dundee Energy Limited ("Dundee Energy" or the "Corporation")
(TSX:DEN) announced today that its board of directors has
conditionally approved a transferable rights offering pursuant to
which Dundee Energy intends to raise approximately $10 million,
subject to definitive terms and conditions as well as approvals
from the Toronto Stock Exchange and securities regulatory
authorities. Dundee Corporation, which owns approximately 57% of
Dundee Energy, will agree to backstop the offering so that it will
purchase common shares not otherwise purchased pursuant to the
exercise of rights by shareholders. The terms of Dundee
Corporation's backstop will be identical in all respects to those
of shareholders participating in the rights offering.
Further information regarding the proposed rights offering will
follow in due course through subsequent announcements as well as a
disclosure document which will be filed and sent to shareholders of
record on a date to be determined. It is expected that the net
proceeds from the offering will be used to incur further
exploration expenditures on the Corporation's properties in
Southern Ontario.
ABOUT THE CORPORATION
Dundee Energy Limited is a Canadian-based oil and natural gas
company with a mandate to create long-term value for its
shareholders through the exploration, development, production and
marketing of oil and natural gas, and through other high impact
energy projects. Dundee Energy holds interests, both directly and
indirectly, in the largest accumulation of producing oil and gas
assets in Ontario, in the development of an offshore underground
natural gas storage facility in Spain and, through a preferred
share investment, in certain exploration and evaluation programs
for oil and natural gas offshore Tunisia. The Corporation's common
shares trade on the Toronto Stock Exchange under the symbol
"DEN".
FORWARD-LOOKING INFORMATION
Certain information set forth in this news release contains
forward-looking statements. Forward-looking statements are
statements that are predictive in nature, depend upon or refer to
future events or conditions or include words such as "expects",
"anticipates", "intends", "plans", "believes", "estimates" or
similar expressions. By their nature, forward-looking statements
are subject to numerous risks and uncertainties, some of which are
beyond the Corporation's control, including: exploration,
development and production risks; uncertainty of reserve estimates;
reliance on operators, management and key personnel; cyclical
nature of the business; economic dependence on a small number of
customers; additional funding that may be required to execute on
exploration and development work; the ability to obtain, sustain or
renew licenses and permits; risks inherent to operating and
investing in foreign countries; availability of drilling equipment
and access; industry competition; environmental concerns; climate
change regulations; volatility of commodity prices; hedging
activities; potential defects in title to properties; potential
conflicts of interest; changes in taxation legislation; insurance,
health, safety and litigation risk; labour costs and labour
relations; geo-political risks; risks relating to management of
growth; aboriginal claims; volatility of the Corporation's share
price; royalty rates and incentives; regulatory risks relating to
oil and natural gas exploration; marketability and price of oil and
natural gas; failure to realize anticipated benefits of
acquisitions and dispositions; information system risk; and other
risk factors discussed or referred to in the section entitled "Risk
Factors" in the Corporation's Annual Information Form for the year
ended December 31, 2011.
Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
The Corporation's actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits the Corporation will derive from them. The Corporation
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Contacts: Dundee Energy Limited Jaffar Khan President & CEO
(403) 264-4985 (403) 262-8299 (FAX) Dundee Energy Limited c/o
Dundee Corporation 21st Floor, Dundee Place 1 Adelaide Street East
Toronto, ON M5C 2V9 www.dundee-energy.com