Exploration & Production | Finance & Investing | Capital Markets

Artisan Energy Funds Tomahawk HZ Drilling

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Artisan Energy Corporation has announced that it has entered into an engagement letter with Integral Capital Markets, a division of Integral Wealth Securities Limited, pursuant to which Integral will offer for sale, on a best efforts private placement basis, up to 15,000,000 common shares of Artisan to be issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) in respect of Canadian exploration expenses at an issue price of $0.27 per CEE Share for aggregate gross proceeds of up to $4,050,000.

In addition, depending on the level of “flow-through” interest indicated, Artisan may also offer additional common shares through Integral to be issued on a “flow-through” basis pursuant to the Tax Act in respect of Canadian development expenses.

It is anticipated that proceeds from the CEE Shares will be used to fund the drilling of qualifying exploration wells in Artisan’s core area north of Pembina at its Tomahawk and Chip Lake projects, and will also test a new conventional oil opportunity in certain lands owned 100% by Artisan in southern Alberta. Proceeds from the issuance of the CDE Shares, if any, would be used to fund the drilling of a horizontal well at Artisan’s Tomahawk project targeting liquids rich gas in the Wilrich-Fahler formation and / or a horizontal well at Artisan’s Chip Lake project targeting light oil in the Rock Creek formation.

Artisan’s ongoing operational focus is on its Tomahawk and Chip Lake projects which Artisan believes have a combined developmental potential to achieve sustained production in excess of 5,000 boepd (25% oil & NGL’s) assuming sufficient access to the necessary development capital.

Closing of the Offering is anticipated to occur on or about December 19, 2014 and is subject to the approval of the TSX Venture Exchange. The gross proceeds from the Offering will be used to incur (by December 31, 2015) and renounce (effective December 31, 2014) Canadian exploration expenses and, if applicable, Canadian development expenses.

The CEE Shares and any CDE Shares will be offered in each of the provinces of Canada other than Quebec. The CEE Shares and any CDE Shares issued in connection with the Offering will be subject to a statutory hold period of four months plus one day from the closing date in accordance with applicable securities legislation.