Second Wave Petroleum Inc SCSZF

financing and frac results

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Second Wave Petroleum Announces Closing of $27 Million Bought Deal Equity Financing and Update on Frac Results in Judy CreekSecond Wave Petroleum Inc SCS 7/20/2010 9:16:00 AMCALGARY, Jul 20, 2010 (Canada NewsWire via COMTEX News Network) --
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CALGARY, July 20 /CNW/ - Second Wave Petroleum Inc. ("Second Wave" or the "Company") is pleased to announce that it has closed its previously announced bought deal equity financing with a syndicate of underwriters co-led by Wellington West Capital Markets Inc. and GMP Securities L.P. and including Desjardins Securities Inc., Clarus Securities Inc., Acumen Capital Finance Partners Limited and CIBC World Markets Inc. Pursuant to the offering, the Company issued 6,670,000 common shares at a price of $3.00 per common share and 2,000,000 flow through common shares at a price of $3.55 per flow through share for aggregate gross proceeds of $27,110,000.

Second Wave intends to use the net proceeds of the offering to fund its Pekisko oil resource development and its Beaverhill Lake exploration programs in Judy Creek, Alberta and for general corporate purposes.

Judy Creek Operations Update

On July 7, 2010 the Company completed a ten-stage acid fracture stimulation on its 01-03-064-09W5 (100% W.I.) Pekisko horizontal oil well. After a nine day production test period the final production rate was 170 boe/d (75% oil) with both the oil and gas rates continuing to increase over the test period. Each of the ten stages was 60m3 in size for an aggregate of 600m3 of acid being placed during the operation. The Company has also successful completed its 04-04-064-09W5 (100% W.I.) Pekisko horizontal oil well on July 19, 2010 with a twelve-stage acid fracture stimulation. Each of the twelve stages was 60 m3 in size for an aggregate of 720 m3 of acid being placed during the operation. The 04-04 well is currently being set-up for production testing however the Company expects that the well will perform at similar production levels to the 01-03 well. The test period on the 01-03 well was truncated after the ninth day to facilitate the 04-04-064-09W5 frac operation which occurred on the same lease. Production rates from the 01-03 well when compared over the same time period after the fracturing operation exceeded the production rates seen at the 01-05-064-09W5 well which was the Company's first long leg horizontal Pekisko well completed in May 2010 using multi-stage acid fracturing technology. The Company currently has two drilling rigs operating in Judy Creek with expectations to drill, complete and tie-in 2-3 horizontal oil wells per month in the third quarter (6 to 9 net wells in total).

Taking into consideration its continued drilling success in Judy Creek and the closing of its recent financing the Company will be in a position to provide an expanded capital budget and updated guidance at the end of August in conjunction with the release of its second quarter financial results.