Westgate Energy Inc. (TSXV: WGT) has announced a $5 million bought deal private placement with Haywood Securities Inc. as sole underwriter, issuing 20,000,000 units at $0.25 each. The offering includes an overallotment option that could lift total gross proceeds to $5.75 million. Net proceeds are intended to fund drilling and development on the company's Mannville Stack assets in East-Central Alberta and West-Central Saskatchewan, a development investors may watch closely given the region's growing oil production activity.

Key Points

  • Westgate Energy Inc. (TSXV: WGT) is a Calgary-based oil and gas company focused on the Mannville Stack fairway
  • A $5 million bought deal private placement has been agreed with sole underwriter Haywood Securities Inc., structured as 20,000,000 units at $0.25 per unit
  • Each unit comprises one common share and one warrant exercisable at $0.35 for 24 months; an overallotment option could add up to $750,000 in additional proceeds
  • The offering is expected to close on or about September 30, 2026, subject to regulatory and TSXV approvals

Unit Structure and Warrant Acceleration Terms

Each of the 20,000,000 units consists of one common share and one warrant entitling the holder to purchase one additional common share at $0.35 for 24 months following closing. The warrants are not exercisable until 61 days after closing. The company may accelerate warrant expiry if the volume-weighted average trading price of its common shares equals or exceeds $0.45 for 10 consecutive trading days after the initial 60-day period, with warrants then expiring 30 days after a triggering press release.

Overallotment Option and Underwriter Compensation

Haywood Securities holds an option to purchase up to an additional 3,000,000 units at the same $0.25 issue price, exercisable up to 48 hours before closing and potentially adding $750,000 in gross proceeds for a total of $5,750,000. The underwriter will receive a cash fee of 8.0% of gross proceeds, reduced to 5.0% on president's list subscriptions. Haywood will also receive compensation options to purchase units equal to 8.0% of units issued — also reduced to 5.0% on president's list orders — at $0.25 per unit, with a 24-month term from closing.

Mannville Stack Development as the Stated Use of Proceeds

The company states it intends to direct net proceeds toward drilling and development activities on its Mannville Stack assets, with the remainder allocated to working capital and general corporate purposes. The Mannville Stack fairway, spanning East-Central Alberta and West-Central Saskatchewan, holds established medium and heavy oil accumulations. The release notes that producers in the region are applying modern horizontal drilling and completion techniques to improve well performance and capital efficiencies, which underpins Westgate's development focus.