Canacol Energy (TSX:CNE, Stock Forum), a Calgary-based petroleum and natural gas exploration firm operating in Colombia, Ecuador, Brazil, Guyana and Peru, announced today that the company signed an agreement with Canaccord Genuity as lead to a syndicate of underwriters who have agreed to purchase 15.823 million common shares of Canacol on a bought deal basis.
According to the news release, the shares were sold at $7.90 per share for gross proceeds of $125 million. The company will also grant the underwriters an option to buy up to 15% additional common shares for a period of 30 days after closing in order to cover any over-allotments that may arise.
The company intends to utilize the net proceeds to expand its capital program and for general corporate purposes when the offering closes on or about May 27, 2014. The transaction is still subject to regulatory approval and certain closing conditions.
The offering may also be sold in the US on a private placement basis to qualified institutional buyers under Rule 144A.
Canacol Energy was in the news recently when the company tested 2,930 BOPD light oil from its Pantro 1 discovery four days ago.
Shares slipped 5.15% on the news to $7.73 per share.
Currently there are 90.2m outstanding shares with a market cap of $697.4 million.