ARC, KERN, other PE investors sell $633 mln in Seven Generations’ shares

Oil and gas company Seven Generations Energy Ltd has closed a $633 million secondary offering of common shares by several of its major founding investors. The shareholders are Canadian private equity firms ARC Financial and KERN Partners, and U.S.-based Natural Gas Partners and ZBI Ventures. The shares were sold at a price of $25.00 per share to a group of institutional investors. Following the transaction, the selling investors will continue to hold around 31% of total common shares in the Calgary-based Seven Generations. CEO Pat Carlson said the company is currently evaluating potential liquidity alternatives. Canada Pension Plan Investment Board (CPPIB) is also a backer of Seven Generations.


Seven Generations Announces Closing of C$633 Million Secondary Offering

CALGARY, April 4, 2014 /CNW/ – Seven Generations Energy Ltd. (“7G” or the “Company”) announces the closing of a C$633 million secondary offering of common shares by certain of its founding major shareholders (the “Selling Shareholders”) at a price of C$25.00 per share to a group of institutional investors. The Selling Shareholders, which consist of funds managed by ARC Financial, KERN Partners, Natural Gas Partners and ZBI Ventures, continue to hold approximately 31% of the common shares of the Company following the sale.

Pat Carlson, Chief Executive Officer, commented, “This transaction marks the beginning of a transition of our shareholder base from our private equity founders towards new public market focused institutional investors as we begin to evaluate potential liquidity alternatives for the Company. We would like to thank our founding major shareholders for their past, and continued, support of our growth plans.”

The Company did not receive any proceeds from the secondary offering. This offering follows (and its terms were driven by) a C$251 million treasury offering of common shares of Seven Generations, which closed in December 2013 and which established the price of C$25.00 per share. The secondary offering and the preceding treasury offering of common shares were led by RBC Capital Markets and Peters & Co. Limited.

Seven Generations Energy Ltd. is a private oil and gas developer with its corporate headquarters in Calgary, Alberta and its operations headquarters in Grande Prairie, Alberta. 7G is engaged in the delineation and development of its Kakwa River Project, a multi-zone, tight, rich gas project in the Alberta Deep Basin, approximately 100km south of Grande Prairie.

This press release is not an offer of the shares in the United States. The shares have not and will not be registered under the U. S. Securities Act of 1933, as amended (the “US Securities Act”). The shares may not be offered or sold, except to accredited investors in reliance on the exemption from registration provided by Regulation D under the US Securities Act, or to persons outside the United States in compliance with Regulation S and applicable Canadian exemptions. Any public offering of securities made in the United States would be made by means of a prospectus that would be obtainable from the Company and that would contain detailed information about the Company, its management and financial statements.

This press release may contain forward-looking information and statements regarding the Company. Any statements included in this press release that address activities, events or developments that the Company “expects,” “believes,” “plans,” “projects,” “estimates” or “anticipates” will or may occur in the future are forward-looking statements. Estimates of reserves and resources are also forward-looking statements. Actual results may differ materially due to a variety of important factors. Among other items, such factors might include: planned and unplanned capital expenditures; changes in general economic conditions; uncertainties in reserve, resource and production estimates; unanticipated recovery or production problems; weather-related interference with business operations; the effects of delays in completion of, or shut-ins of, gas and liquids gathering systems, pipelines and processing facilities; potential costs associated with complying with new or modified regulations; oil and natural gas prices and competition; the impact of derivative positions; production expense estimates; cash flow and cash flow estimates; drilling and operating risks; our ability to replace oil and gas reserves; volatility in the financial and credit markets or in oil and natural gas prices. Except as required by law, the Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change. Do not place undue reliance on forward-looking information.

SOURCE Seven Generations Energy Ltd.

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Pat Carlson

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