CALGARY,
Sept. 10, 2012 /PRNewswire/ -
(TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier")
announced today that it has closed the first tranche of its
previously announced non-brokered private placement of up to
$10 million in gross proceeds (the
"Offering"). Pursuant to the first closing of the Offering,
PetroFrontier issued 7,471,002 units (the "Units") at a price of
$0.65 per Unit for gross proceeds of
$4,856,151. Each Unit consists of one
common share ("Share") and one common share purchase warrant
("Warrant"). Each Warrant entitles the holder thereof to acquire
one additional Share at a price of $0.90 per Share. The Warrants will expire on
September 8, 2014 (the "Warrant
Expiry Date"), unless the volume weighted average trading price of
the Shares on the TSX Venture Exchange Inc. during the 10
consecutive trading days immediately prior to the date for which
such calculation is made is greater than $1.125 (the "Trigger Event"). If a Trigger Event
occurs, the Warrant Expiry Date may, at the option of
PetroFrontier, be accelerated to the later of: (i) 30 business days
from the Trigger Event date; and (ii) one month following the
expiry of the applicable hold period required under securities
laws.
PetroFrontier has already received and accepted subscriptions
for the second tranche of the Offering for aggregate gross proceeds
of $1,310,800 and anticipates that a
second closing of the Offering will take place on or about
September 14, 2012. Directors and
officers of PetroFrontier have subscribed for the majority of the
$1,310,800 of the second tranche of
the Offering. PetroFrontier may pay eligible dealers and advisers a
cash commission of 3% on Units sold, pursuant to the second
tranche.
Proceeds from the Offering will be used to fund the remainder of
PetroFrontier's 2012 joint capital expenditure program with Statoil
Australia Oil and Gas AS and for general corporate purposes. The
Offering is subject to regulatory approval, including the approval
of the TSX Venture Exchange Inc. The securities sold pursuant to
the Offering will be subject to a four month hold period.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in
the exploration, acquisition and development of both conventional
and unconventional onshore petroleum assets in Australia's Southern Georgina Basin. Founded
in 2009, PetroFrontier is one of the first companies to undertake
onshore exploration in the Southern Georgina Basin in Australia's Northern Territory.
PetroFrontier's head office is in Calgary, Alberta and its operations office is
in Adelaide, South Australia. PetroFrontier's common
shares are listed on the TSX Venture Exchange under the symbol
"PFC".
Forward-Looking Statements
This press release may contain forward-looking information
that involves substantial known and unknown risks and
uncertainties, most of which are beyond the control of
PetroFrontier, including, without limitation, statements pertaining
to the closing of the Offering and the anticipated use of
proceeds. All statements included herein, other than
statements of historical fact, are forward-looking information and
such information involves various risks and uncertainties.
There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in PetroFrontier's disclosure documents on the SEDAR
website at www.sedar.com. Any forward-looking
statements are made as of the date of this release and, other than
as required by applicable securities laws, PetroFrontier does not
assume any obligation to update or revise them to reflect new
events or circumstances.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE PetroFrontier Corp.