Brief: Gear Energy announced approval of a $31.0 million 2016 development capital budget

Gear Energy

10/11/2015 21:24

Nov 10 (Reuters) - Gear Energy Ltd  GXE.TO : 
 * Announces $25.8 million financing, 2016 capital budget and provides banking 
   update 
 * Announced approval of a $31.0 million 2016 development capital budget 
 * Proceeds of offering will initially be used to reduce bank indebtedness, 
   which may be redrawn to fund 2016 capital expenditure program 
 * Approximately 86 per cent of the 2016 budget is expected to be dedicated to 
   drilling low risk horizontal wells 
 * Gear's 2016 budget includes estimates for continued cost reductions when 
   compared to 2015 guidance" 
 * Sees 2016 annual production (boe/d) 5,100 to 5,400 
 * Concurrent with closing of offering, borrowing base under syndicated demand 
   bank facilities of company will be reduced to $60.0 million 
 
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