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Update: Raging River Exploration Raises Over $88 Million In Equity Offering

Raging River Exploration (RRENF), also traded on the TSX under "RRX", announced yesterday that it has closed its agreement to sell 13,800,000 common shares on a bought deal basis at a price of $6.40 per share to a syndicate co-lead by Peters & Co. and FirstEnergy Capital Corp. for gross proceeds of $88.32 million. The proceeds will be used to repay debt under Raging River's credit facilities, which will be redrawn to fund this year's capital expenditure.

As we noted in our initiation article, Raging River holds top-notch assets in the Kindersley-Dodsland region that has very low cost of production. RRX, therefore, can implement vertical water-flood techniques to enhance its recovery factor to 20-25%, an improvement to its historical recovery factor of 10-20%. In light of low oil prices, we continue to believe that RRX is one of the best Canadian E&P companies.

Overall, we realize that the equity… Read More …