CALGARY, ALBERTA, Nov. 6, 2009 (Marketwire) -- Eagle Rock Exploration Ltd. ("Eagle Rock" or the "Company") (TSX VENTURE:ERX) Is pleased to announce that it has completed its previously announced bought deal financing for gross proceeds of $54.5 million (the "Offering"). Pursuant to the Offering, Eagle Rock, through a syndicate of underwriters co-led by National Bank Financial Inc. and Peters & Co. Limited, and including FirstEnergy Capital Corp., Paradigm Capital Inc., Cormark Securities Inc. and GMP Securities L.P. (the "Underwriters") issued 363,400,000 subscription receipts ("Subscription Receipts") at a price of $0.15 per Subscription Receipt, which included 47,400,000 Subscription Receipts issued in connection with the full exercise of the Underwriters' over-allotment option.
Eagle Rock is also pleased to announce that in conjunction with closing of the Offering, it has completed the previously announced acquisition (the "Acquisition") from Bonterra Oil & Gas Ltd. of oil production, petroleum and natural gas properties and related assets in the Eastend area of Saskatchewan, providing Eagle Rock with approximately 200 barrels of oil per day of medium gravity oil production and 18.5 additional net sections of land prospective for medium oil using multi-stage frac technology in the Lower Shaunavon fairway. The purchase price to complete the Acquisition consisted of approximately $24 million in cash, with the balance being paid through the issuance of 30,769,200 common shares of Eagle Rock ("Common Shares") at a deemed price of $0.15 per share.
With the closing of the Acquisition, the Subscription Receipts have been exchanged, on a 1 for 1 basis, into an equivalent number of Common Shares. Holders of Subscription Receipts were not required to take any action or make any additional payment to receive the Common Shares to which they were entitled. The remainder of the net proceeds of the Offering has been released to Eagle Rock.
The Common Shares issued as partial consideration to fund the purchase price of the Acquisition will be subject to a four-month hold period expiring March 7, 2010.
The Acquisition is consistent with Eagle Rock's strategy of acquiring assets with high working interests, operatorship, infrastructure and undeveloped land. Eagle Rock has internally identified over 110 drilling opportunities on the Acquisition lands.
Eagle Rock is also pleased to announce that at a special meeting of shareholders of the Company held on October 30, 2009, special resolutions to (i) consolidate the issued and outstanding Common Shares of Eagle Rock on a 30 to 1 basis (the "Consolidation"), and (ii) change the name of the Company to "Wild Stream Exploration Inc." were approved by shareholders. Management expects to implement the Consolidation and the change of corporate name on or about November 16, 2009.
Additionally, Eagle Rock is also pleased to announce the appointment of Mr.
