Petrus Buys Peace River Assets

Petrus Resources Ltd., a privately-held oil and gas exploration company based in Calgary, has closed on its previously-announced acquisition of oil and gas assets in the Peace River Area of Alberta from an unidentified seller for about $C60 million.

The assets have production of about 1,600 barrels of oil equivalent per day, about half of which is oil. The acquisition was announced in the third week of June and closed on June 29, with an effective day of April 1, 2012.

The purchase was funded through a previously-announced $90 million private placement of 50.8 million common shares at an issue price of $1.75 per share and 605,488 shares issued on a "flow-through" basis pursuant to the provisions Canada's Income Tax Act at an issue price of $2.10 per flow-through share, for aggregate gross proceeds of $90.1 million.

Because of additional late demand Petrus expects to close on additional subscriptions about July 5, 2012. NGP Natural Resources X LP subscribed for $63 million of common shares in the offering. The brokered component of the offering was completed by a syndicate of agents led by RBC Capital Markets and including CIBC World Markets Inc. and FirstEnergy Capital Corp.