Tuesday, September 9, 2014

PrairieSky Royalty Ltd. - PSK.t

PrairieSky Royalty Ltd. - PSK.t was formed to acquire fee simple mineral title lands predominately in Alberta with the objective to generate significant free cash flow and growth to its shareholders through indirect oil and gas investment at a relatively low risk and low cost to PrairieSky Royalty.

On September 8, 2014, the company reported News

Encana Corporation ("Encana") (TSX:ECA)(NYSE:ECA) and PrairieSky Royalty Ltd. (“PrairieSky”) (TSX:PSK) announced today that they have entered into an agreement with a syndicate of underwriters, pursuant to which the underwriters will purchase from Encana, on a bought deal basis, 70,200,000 common shares of PrairieSky (the “Shares”) at a price of $36.50 per Share (the “Issue Price”), for aggregate gross proceeds to Encana of approximately $2.6 billion (the "Offering").

The Offering is expected to close on or about September 26, 2014 and all proceeds of the Offering will be payable to Encana. Following closing of the Offering, Encana will no longer hold an interest in PrairieSky.

PrairieSky intends to file a preliminary short form prospectus (“Preliminary Prospectus”) on or before September 12, 2014 with the securities regulatory authorities of all provinces and territories in Canada in respect of the Offering. Completion of the Offering is subject to, and conditional upon, the receipt of all necessary approvals, including regulatory approvals. The Preliminary Prospectus will still be subject to completion or amendment. Copies of the Preliminary Prospectus will be available on SEDAR at http://www.sedar.com or from the underwriters named in the Preliminary Prospectus. This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities until a receipt for the final short form prospectus has been issued.