DEEP Earth Energy Production initiates $5 million private placement
Drilling rig at Estevan, Saskatchewan (source: flickr/ Jeff Sandquist, creative commons)
Alexander Richter
19 Dec 2011
Canadian developer DEEP Earth Energy Production announces a non-brokered private placement of up to $5 million to complete initial exploration test wells, one development well, as well as other project and general working capital purposes.
Canadian geothermal developer DEEP Earth Energy Production Corp. announces the initiation of a “non-brokered private placement – of up to $5,000,000.
The offering consists of up to CND$750,000 in flow-through shares and up to a maximum of CND$4,250,000 in non-flow-through units.
The pricing of the offering is CND$0.25 per flow-through share and CND$0.25 per non-flow-through unit. Units are comprised of one (1) non-flow-through common share and one (1) warrant to purchase one-half of one non-flow-through common. Two (2) warrants are required to purchase one (1) whole non-flow-through common share upon payment to the Corporation of the exercise price of CDN$0.35 per share for 18 months from date of issuance.
The Corporation plans to use the net proceeds of the Offering to complete an initial exploration test well, one development well on the Rafferty Project, reservoir engineering, possible reservoir enhancement and for general working capital purposes.
The flow-through Offering is expected to close on December 30th, 2011. The non-flow through is expected to close January 31st, 2012.
DEEP is now aligning itself to complete Phase 1 in the development of the Rafferty Geothermal Power Project, located northwest of Estevan Saskatchewan. Deep aims to be the first geothermal power producer in the province and was recently selected in SaskPower’s 2011 Green Options Partners Program Lottery, securing an initial 5 MW power purchase agreement. Deep’s target resource is a 3000 metre deep (Deadwood and Winnipeg Formations), hot aquifer – a 150 metre thick zone that has been drilled and temperature tested from oil and gas exploration in Southeast Saskatchewan.
For more information or to obtain a subscription agreement, please contact:
Kirsten Y. Marcia, President & CEO, (306) 261-6979, kmarcia@deepcorp.ca
or
Al Zack, CFO, (306) 651-5192, azack@deepcorp.ca
Source: Company release
