(OTCB: GRPR – Grid Petroleum Corp)
LATEST NEWS:
Grid Petroleum Corp. Announce USD $5,000,000 Equity Financing Agreement
LONDON, Apr 26, 2010 (BUSINESS WIRE) — Grid Petroleum Corp. (OTCBB:GRPR – News) is pleased to announce the execution of a $5 million US Dollar equity financing agreement with a European Institutional investor. The initial agreement is for an initial sum of $5 million with the provision to increase this amount further if necessary.
The terms of the agreement are for up to USD $5,000,000 to be drawn from the investor in exchange for equity in the company. Equity is priced at the higher of either (a) $0.75, or (b) 90% of the volume weighted average of the closing price (the “VWAP”) of Common Stock, for the five (5) Banking Days immediately preceding the date of the Notice requesting funds.
Each share issuance is accompanied by a purchase warrant on a one for one basis. Each Warrant shall entitle the Subscriber to purchase one additional share (each a “WARRANT SHARE”) of Common Stock, at an exercise price equal to 150% of the Unit Price at which the Unit containing the Warrant being exercised was issued, for a period of two (2) years from the date such Warrant is issued.
The inclusion of a floor price in the financing, and the lack of floorless warrants is hoped to ensure stability in the price of the stock, and will not allow equity to be issued at prices significantly lower than current market. There is also an option of a further USD $2,500,000 should both parties wish to proceed, enabling Grid to draw a potential total of USD $7,500,000.
The deal comes at a time when Grid has acquired close to four thousand acres of oil and gas properties in the Jonah Field region of Wyoming, USA — North America’s second largest proven gas reserve. As a ‘draw down’ agreement, the equity financing allows Grid to draw on this money as and when required by it’s Jonah Field exploration, eliminating debt, while leaving the prospect of future exploration and production on the site a real possibility.
Paul Watts, CEO of Grid Petroleum, said: “This equity financing has come at a time when Grid is preparing to undertake exploration on one of the richest natural gas sites in North America. Thanks to this agreement, we’re able to fully undertake this exploration with the best resources available. We firmly believe it opens up the full potential of the leases’ future productivity, while allowing us to protect our investors through the absence of debt”.
About Grid Petroleum Grid Petroleum Corp (NASD OTC BB: GRPR) is a London, UK based Independent Oil and Gas Exploration Company, with an operational office in Denver Colorado. Grid has recently secured assets in Wyoming, neighboring the prolific Jonah Gas Field. For more information, please visit www.gridpetroleum.com.
LATEST NEWS
(OTCBB: MNLU – Mainland Resources, Inc)
Mainland Resources, Inc. Closes Sale of its Haynesville Shale Assets With EXCO Operating Company, LP for Over US$28 Million
HOUSTON, April 22, 2010 /PRNewswire via COMTEX/ — Mainland Resources, Inc. (the “Company” or “Mainland”) (OTC Bulletin Board: MNLU; Frankfurt 5MN) reports that the Company has successfully closed the sale of its Haynesville Shale assets in East Holly Field, DeSoto Parish, Louisiana. The assets have been sold to EXCO Operating Company, LP, a wholly owned subsidiary of EXCO Resources (NYSE: XCO), for US$28,159,000, effective January 1, 2010.
Mainland has sold its 40% working interest in all rights deeper than the base of the Cotton Valley formation (which has been defined to be 100 feet below the stratigraphic equivalent of the Cotton Valley formation) in the East Holly Field. Mainland continues to own a 100% interest in all rights above this depth, and specifically, in the Cotton Valley, Hosston and Upper Bossier sections.
The Company intends to use the proceeds of the sale to fund the drilling of the initial well (designated as the Burkley-Phillips No. 1 Well) on its Buena Vista prospect in Jefferson County, Mississippi, as well as to commence development drilling on the Hosston/Cotton Valley formations in the East Holly Field, and to retire its debt to Guggenheim Partners LLC.
The rights retained by Mainland in all formations above the base of the Cotton Valley formation in the East Holly Field encompasses 2,745.65 net acres with an estimated 65 net potential drilling locations. The four recent wells drilled by the original Operator through the Hosston and Cotton Valley zones to the Haynesville formation calculate as productive.
Based on the data and economics, Mainland plans to drill three wells as operator in the Hosston/Cotton Valley formations in 2010, and also to evaluate the shale gas production value of the Upper Bossier formation on its DeSoto Parish leases. The Company expects that these formations will provide continual solid pay with little risk and predictable development costs.
As previously disclosed in its news release dated March 25, 2010, Mainland, as operator, intends to drill the Burkley-Phillips No. 1 well to the Haynesville Shale formation on its Buena Vista prospect in Mississippi, where it currently holds in excess of 17,000 acres. The well is expected to be drilled to a total depth of 22,000 feet or a depth sufficient to evaluate the Haynesville Shale formation. Drilling is expected to commence in the latter part of the second quarter of 2010.
About Mainland Resources, Inc.
Mainland Resources is an independent company engaged in the exploration and development of oil and gas resources. The Company’s current initiatives are focused on the acquisition and development of leases in emerging gas regions with the potential for discoveries including the Haynesville shale.
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