E&P Spartan Delta Corp. has increased its previously announced bought deal equity financing to CA$85 million (US$59.2 million) from CA$50 million (US$34.85 million), Calgary-based Spartan said Jan. 14.

The company reached the agreement with a syndicate of underwriters led by National Bank Financial Inc., which is also acting as the lead underwriter and sole bookrunner, the company said in its release.

Under the terms of the increased deal, the underwriters have agreed to purchase approximately 22.2 million of Spartan common shares, for resale to the public, at CA$3.82 per share (US$2.66), the company said.

The shares are expected to generate gross proceeds of approximately CA$85 million, Spartan said.

The company holds assets in the Deep Basin and Duvernay Shale.

The underwriters also have an option to acquire up to an additional 15% of the common shares issued under this equity offering at CA$3.82 per share to cover over allotments and for market stabilization purposes, the release stated.

The equity offering is expected to close by Jan. 30.

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