/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
CALGARY,
AB, March 1, 2023 /CNW/ - Journey Energy Inc.
(TSX: JOY) (OTCQX: JRNGF) ("Journey" or the
"Company") is pleased to announce that, as a result of
excess demand, it has agreed with the syndicate of
underwriters, led by Stifel FirstEnergy (collectively, the
"Underwriters"), to increase the size of its previously announced
"bought deal" public offering of "flow-through shares" with respect
to "Canadian development expenses" within the meaning of the
Income Tax Act (Canada) and
the regulations thereunder in force as of the date hereof (the "Tax
Act"). Journey will now issue 2,643,505 common shares (the
"Flow-Through Shares") at a price (the "Offering Price") of
$6.62 per Flow-Through Share, for
total gross proceeds to the Company of approximately $17.5 million (the "Offering").
Journey has granted to the Underwriters an option to purchase
additional Flow-Through Shares, equal to 15% of the number of
Flow-Through Shares sold pursuant to the Offering at the Offering
Price, for market stabilization purposes and to cover
over-allotments for a period expiring March
31, 2023.
In all other respects, the terms of the Offering and use of
proceeds will remain as previously disclosed in the March 1, 2023 press release.
About the Company
Journey is a Canadian exploration and production company focused
on conventional, oil-weighted operations in western Canada. Journey's strategy is to grow its
production base by drilling on its existing core lands,
implementing water flood projects, and executing on accretive
acquisitions. Journey seeks to optimize its legacy oil pools on
existing lands through the application of best practices in
horizontal drilling and, where feasible, with water floods.
FORWARD LOOKING
STATEMENTS:
This press release contains forward-looking statements. The use
of any of the words "anticipate", "continue", "estimate", "expect",
"may", "will", "project", "should", "believe" and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. More particularly, this press release contains
statements with respect to closing of the Offering, the use of
proceeds of the Offering, the tax treatment of the Flow-Through
Shares and the timing of the renunciation of the development
expenses.
The forward-looking statements are based on certain key
expectations and assumptions made by Journey. Although Journey
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because
Journey can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, risks associated with the
condition of the global economy, including trade, public health
(including the impact of COVID-19) and other geopolitical risks;
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks); commodity price and exchange rate
fluctuations and constraint in the availability of services,
adverse weather or break-up conditions; uncertainties resulting
from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures.
Certain of these risks are set out in more detail in Journey's AIF
dated March 31, 2022 and in Journey's MD&A for the
period ended September 30, 2022, both of which have been filed
on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date hereof and Journey undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
SOURCE Journey Energy Inc.
