Logan Energy Corp. announces Duvernay land position, accelerated Pouce Coupe development, preliminary 2025 budget, $30 million equity offering and committed credit facilities of $125 million
Summary
In addition, the Company is pleased to announce its expanded 2024 budget and a fully funded preliminary budget for 2025, which will deliver 82% growth in Adjusted Funds Flow per share.Logan is also pleased to announce an equity financing to be offered on a bought deal, private placement basis, with National Bank Financial Inc. as sole bookrunner and co-lead underwriter and Eight Capital as co-lead underwriter, for aggregate gross proceeds of $30.0 million (the Equity Offering).In connection with the accelerated capital expenditure budget and construction of the Pouce Coupe infrastructure, Logan has also received a commitment letter from National Bank of Canada (the Lender) pursuant to which the Lender has agreed to provide the Company with new committed credit facilities in the aggregate principal amount of $125.0 million (the New Credit Facilities).Logan has assembled a ~152 section position within the greater Kaybob Duvernay oil play. The Company has agreed to pay a cash commission of 4.0% of the gross proceeds of the Equity Offering to the Underwriters, except with respect to subscribers to be included on the presidents list for which no commission will be paid.The Common Shares will be subject to a statutory hold period that extends four months from the Closing Date; provided that any Common Shares issued in the United States will be subject to a 1 year hold period, subject to the ability to resell the Common Shares on the TSXV prior to 1 year in accordance with U.S. securities laws.In connection with the accelerated capital expenditure budget and construction of the Pouce Coupe infrastructure, the Company has received a commitment letter from the Lender, pursuant to which the Lender has agreed to commit, on a bilateral basis, to provide the Company with the New Credit Facilities in the aggregate principal amount of $125.0 million. Refer to additional information regarding outstanding dilutive securities under the heading of Share Capital in this press release.Logan is pleased to provide a fully funded preliminary budget for 2025, focused on delivering material liquids growth, an inaugural Duvernay program and accelerated Pouce Coupe development. Without limitation, this press release contains forward-looking statements pertaining to: the Companys five year growth plan; the completion of the Equity Offering and the New Credit Facilities and the terms and timing thereof and use of proceeds therefrom; satisfaction or waiver of the closing conditions to the Equity Offering and the New Credit Facilities; receipt of required regulatory and stock exchange approvals for the completion of the Equity Offering; insider participation in the Equity Offering; Logans upwardly revised 2024 capital expenditures guidance; Logans 2024 and 2025 capital budget, including drilling programs and infrastructure development and the timing and anticipated results thereof; the payout on the incremental capital to expand the battery as a gas plant; the Companys opportunity rich assets (including in the Duvernay) which represent over a decade of tier one highly economic oil weighted inventory; managements track record of generating excess returns in various business cycles; success of the Companys drilling program based on initial results; future drilling plans; EUR; risk management activities, including hedging; continuing to advance key infrastructure projects; forecast production for the second half of 2024 and 2025; and the expectation that per unit operating expenses will decrease with production growth.The forward-looking statements and information are based on certain key expectations and assumptions made in respect of Logan including expectations and assumptions concerning: the receipt of all approvals and satisfaction of all conditions to the completion of the Equity Offering and the New Credit Facilities; the business plan of Logan; the timing of and success of future drilling; development and completion activities and infrastructure projects; the performance of existing wells; the performance of new wells; the availability and performance of facilities and pipelines; the geological characteristics of Logans properties; the successful integration of the recently acquired assets into Logans operations; the successful application of drilling, completion and seismic technology; prevailing weather conditions; prevailing legislation affecting the oil and gas industry; prevailing commodity prices, price volatility, price differentials and the actual prices received for Logans products; impact of inflation on costs; royalty regimes and exchange rates; the application of regulatory and licensing requirements; the availability of capital (including under the Equity Offering and the New Credit Facilities), labour and services; the creditworthiness of industry partners; and the ability to source and complete acquisitions.Although Logan believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Logan can give no assurance that they will prove to be correct. Changes in forecast commodity prices, exchange rates, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Logans guidance.