Kodiak Energy, Inc. Subsidary Cougar Energy Inc., Enters Strategic Alliance for Long Term Financing
Kodiak Energy, Inc. majority controlled subsidiary, Cougar Energy, Inc., Is pleased to announce that it has concluded a strategic long term financing agreement with a Swiss Private Equity Fund focused on the Energy Sector to develop its CREEnergy Joint Venture and other properties located in Western Canada.
Key components of the Cougar financing package include:
1. $1,500,000 in equity financing via a private placement of Cougar Shares – price of $1.30 per common share. 2. Arrangement by the fund of a non-dilutive $5,000,000 development debt financing.
3. A $750,000 payment by the fund to Cougar to acquire the heavy oil rights on an equal basis with Cougar plus a 10% working interest in the conventional oil and gas opportunities when Cougar completes the nomination and leasing of the CREEnergy properties. The Fund will be responsible for its share of all exploration and development costs following closing.
Kodiak currently owns 94% of Cougar and following the above financing, if fully drawn; Kodiak will retain 81% of Cougar.
