CALGARY, ALBERTA--(Marketwire - Oct. 23, 2008) - Open Range Energy Corp. ("Open Range" or the "Corporation") would like to announce that the Toronto Stock Exchange (TSX:ONR) has accepted its Notice of Intention to commence a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Open Range considers appropriate, up to a maximum of 1,366,662 Common Shares of the Corporation. The maximum number of Common shares to be purchased pursuant to the Bid represents 5% of the issued and outstanding Common Shares of the Corporation as of the date hereof, being 27,334,241 Common Shares. Purchases of Common Shares pursuant to the Bid will be made on the open market through the facilities of the TSX. The price which Open Range will pay for any Common Shares purchased will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. The actual Common Shares that may be purchased for cancellation and the timing of such purchases will be determined by Open Range, subject to a maximum daily purchase limitation of 30,186 Common Shares which equates to 25% of Open Range's average daily trading volume for the six months ended September 30, 2008.
The Bid will commence on October 28, 2008 and will end on October 27, 2009 or such earlier time as the Bid is completed or terminated at the option of the Corporation. Cormark Securities Inc. has agreed to act on Open Range's behalf to make purchases of Common Shares pursuant to the Bid.
Management of Open Range believes that, from time to time, the market price of its Common Shares may not fully reflect the underlying value of the Common Shares and that at such times the purchase of Common Shares would be in the best interests of Open Range and its shareholders. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders of Open Range.
Open Range is also pleased to announce that as a result of a recently completed semi-annual credit facility review with a Canadian chartered bank, the Corporation's credit facilities have increased by 35 percent from $40 million to $54 million. Based on this latest increase, Open Range now has a $50 million extendable revolving credit facility and a $4 million non-revolving acquisition/development demand facility. The facilities are borrowing based facilities that are determined based on, among other things, the Corporation's oil and natural gas reserves, production and operating results, current and forecast commodity prices and current economic and credit conditions. The Corporation currently has approximately $15.6 million drawn against these facilities, which represents 29 percent of its total available bank lines. The next scheduled facility review will occur in April 2009.
OPEN RANGE ENERGY CORP.
