Harbour Petroleum Raises $7.0 Million through Private Placements and Debt Financing

Strategic Insights -

Harbour Petroleum Company Limited, a Calgary-based independent oil and gas exploration and development company, has entered into agreements to raise $7.0 million through private placements and debt financing. The funds will be used to reduce the company's bank indebtedness and accelerate its 1995/96 exploration and development program. The company's shares trade on The Toronto Stock Exchange under the symbol HRP.

Key Takeaways:

  • Harbour Petroleum raised $7.0 million through private placements and debt financing, consisting of $2.8 million in common shares, $2.2 million in flow-through common shares, and $2.0 million in 9.95% secured convertible debentures.
  • The company intends to use the proceeds to reduce its bank indebtedness and accelerate its 1995/96 exploration and development program.
  • The private placements were completed at prices of $1.25 per common share and $1.60 per flow-through common share, respectively.
  • The 9.95% secured convertible debentures have a four-year term and a conversion rate of $1.68 per common share.
  • The financings are subject to completion of formal documentation and regulatory conditions and approval.
  • Closing of the financings is expected to occur by the end of June 1995.
  • Harbour Petroleum Company Limited is an independent oil and gas exploration and development company headquartered in Calgary, Alberta.
  • The company's shares trade on The Toronto Stock Exchange under the symbol HRP.

Statistics:

  • $7.0 million: Amount raised through private placements and debt financing.
  • $2.8 million: Amount raised through common share private placement.
  • $1.25: Price per common share in private placement.
  • $2.2 million: Amount raised through flow-through common share private placement.
  • $1.60: Price per flow-through common share in private placement.
  • $2.0 million: Amount raised through 9.95% secured convertible debentures.
  • 4 years: Term of 9.95% secured convertible debentures.
  • $1.68: Conversion rate of 9.95% secured convertible debentures.

Sources:

  • Business Wire, "HARBOUR PETROLEUM (TSE: HRP TSE: HRP) Harbour Petroleum Company Limited Announces Private Placement, Debt Financing", June 16, 1995.