Press release from Marketwire
Novus Energy Inc Announces $20 Million Bought Deal Financing
Tuesday, April 27, 2010
Novus Energy Inc Announces $20 Million Bought Deal Financing08:07 EDT Tuesday, April 27, 2010CALGARY, ALBERTA--(Marketwire - April 27, 2010) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.Novus Energy Inc. ("Novus" or the "Company") (TSX VENTURE:NVS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including GMP Securities L.P., Canaccord Financial Ltd., Haywood Securities Inc., Mackie Research Capital Corporation, CIBC World Markets Inc., Clarus Securities Inc., Raymond James Ltd., Desjardins Securities Inc., Jennings Capital Inc., Jacob Securities Inc., and Thomas Weisel Partners Canada Inc. (collectively the "Underwriters"), pursuant to which the Underwriters have agreed to purchase on an "bought deal" basis 18,185,000 common shares ("Common Shares") of Novus at a price of $1.10 per Common Share for aggregate gross proceeds of approximately $20.0 million (the "Offering"). Proceeds of the Offering will be used to fund the Company's ongoing capital program, to develop and expand its core area of operations, to pursue acquisition opportunities and for general corporate purposes. The Offering is scheduled to close on or about May 18, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Common Shares will be offered in all provinces of Canada (other than Quebec) by way of short form prospectus, and in the U.S. on a private placement basis pursuant to exemptions from registration requirements. Novus is also pleased to announce that it has entered into two separate non-binding agreements to acquire assets within its core area of Dodsland, Saskatchewan. Under the terms of the first agreement, Novus will acquire 4,800 net acres (7.5 net sections) of prospective land in the Viking oil resource play at Dodsland, Saskatchewan for the consideration of $1.3 million in cash and the issuance of 390,000 common shares of Novus.Pursuant to the terms of the second agreement, Novus will acquire 960 acres (1.5 net sections) of key lands immediately offsetting the Company's current drilling activity in the Dodsland area for consideration of $1 million in cash.The acquisition of the 5,760 acres (9.0 net sections) will provide Novus with continued expansion opportunities within its core area located in the Viking oil resource play of Dodsland, Saskatchewan. Novus has identified 15 net horizontal drilling locations targeting the Viking light oil formation on the acreage to be acquired. Upon closing these transactions, Novus will have approximately 33,460 net acres (52.25 net sections) of land in the Dodsland area, increasing the Company's drilling inventory to 165 net horizontal Viking oil drilling locations, assuming a drilling density of 4 wells per section.Since March 2010, Novus has drilled and cased a total of ten Viking horizontal wells and continues to drill its large inventory during its spring drilling program. Completion operations are underway with multi stage fracing commencing this week.The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Novus Energy Inc. is a well positioned, junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of high netback light oil reserves and production. Novus will continue to grow through a targeted acquisition and consolidation strategy coupled with development and exploration drilling. After the closing of the Offering, Novus' strong financial position will allow for the exploitation of its drilling inventory and expansion of the Company's opportunity suite through internally generated prospects and strategic light oil acquisitions. Novus Shares trade on the TSX Venture Exchange under the symbol NVS. Novus currently has 142.5 million common shares outstanding. This news release will not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, absent registration or an applicable exemption from the registration requirements.Advisory Regarding Forward-Looking StatementsThis press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.This press release contains forward-looking statements and information concerning the anticipated completion of the proposed Offering and asset acquisitions and the anticipated timing for completion of same. Novus has provided these anticipated times in reliance on certain assumptions that they believe are reasonable at this time, including assumptions as to the time required to prepare various materials for filing, the timing of receipt of the necessary regulatory approvals and the time necessary to satisfy the conditions to the closing of the Offering and asset acquisitions. These dates may change for a number of reasons, including unforeseen delays in preparing materials for filing, inability to secure necessary regulatory approvals in the time assumed or the need for additional time to satisfy the conditions to the completion of the Offering and asset acquisitions. Readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Novus' operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Novus' website (www.novusenergy.ca). The forward-looking statements and information contained in this press release are made as of the date hereof and Novus undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Novus Energy Inc. Hugh G. Ross President and CEO (403) 218-8895 or Novus Energy Inc. Ketan Panchmatia Chief Financial Officer (403) 218-8876 or Novus Energy Inc. Julian Din VP Business Development (403) 218-8896 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.