Opal Energy Corp. (the ?Company?) (TSX-V: OPA) announced today that, subject to market conditions, it plans to offer up to U.S. $35.0 million of Convertible Senior Secured Notes due 2013. The Notes will be secured by all of the assets of the Company and its subsidiaries, and all of the Company?s subsidiaries will fully and unconditionally guarantee the Notes. The Company also plans to grant the initial purchaser of the Notes a 30-day option to purchase up to an additional U.S. $5.25 million principal amount of the Notes.
The Company intends to use the net proceeds of the proposed offering to fund natural gas and oil exploration and production efforts in the onshore Gulf Coast region of Texas, with a balanced focus on lower risk Miocene, Frio and Yegua trend prospects in Victoria County, as well as higher risk Wilcox trend prospects throughout the region.
The Notes and common shares issuable upon conversion of the Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state laws. The Company plans to offer the Notes to qualified institutional buyers pursuant to Rule 144A under the Act.
The Company?s common shares are publicly traded in Canada on the TSX Venture Exchange under the symbol ?OPA.? The Notes will be convertible into common shares at a fixed conversion price. Under the terms of the offering, the common shares issuable upon the conversion of the Notes are to be freely-tradable on the TSX Venture Exchange immediately following the closing of the initial sale of the Notes.
Completion of the offering of the Notes is subject to the prior approval of the TSX Venture Exchange.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Opal Energy Corp.
Opal Energy Corp. is an independent exploration and production company, focused on developing onshore natural gas resources in South Texas. Key components of its strategy include the use of proprietary 3-D seismic surveys, concentration on underexplored regions and reliance on a team of highly experienced E&P professionals, based primarily at the company?s U.S. headquarters in Katy, Texas. Listed on the TSX-V Exchange (TSX-V: OPA), the company also maintains a corporate office in Vancouver, B.C., Canada and a satellite office in Victoria, Texas.