Rocky Mountain GTL Inc. is pleased to announce that it has completed a private placement of units composed of common shares and warrants and convertible debentures due in 2020, for aggregate gross proceeds of approximately $42 million. With the completion of the above private placement, the Board of Directors has approved the final investment decision to proceed with the construction of Canada's first commercial Gas to Liquids (GTL) plant 60 kilometers east of Calgary, near Carseland, Alberta.
The Corporation's Carseland Enhanced GTL (EGTL) project is fully permitted and shovel ready. The proceeds of the private placements will be used to complete detailed engineering, order equipment and begin construction. The plant is designed to process up to ~5.0 MMscfe/d of natural gas and natural gas liquids into a nominal 500 bbl/d of paraffinic synthetic diesel and naphtha. The EGTL plant will be based on technology provided by affiliates of Greyrock Energy with technology enhancements by Expander Energy Inc.. The GTL plant will incorporate several unique features in that it will be water neutral, self-sufficient on electric power, and will recycle significant process CO2 in order to produce additional synthetic diesel. The Carseland plant forms the basis for future EGTL plants that are scalable from 5.0MMscfe/d to 50.0 MMsfce/d of natural gas capacity.
The Corporation exchanged 4.2 million Units and 4.6 million exchangeable performance warrants to acquire Expander Energy Inc.'s patented Enhanced GTL technology. The Corporation also completed a technology supply agreement from Greyrock that enables the deployment of additional plants that use Greyrock's Direct Fuel Production technology and GreyCat catalyst.
"This landmark transaction signals a new era of natural gas processing and monetization. The patented EGTL plants convert Natural Gas/Natural Gas Liquids/Liquid Petroleum Gas, in any combination, into a single synthetic paraffinic diesel product. Rocky Mountain GTL Inc. will eliminate price or pipeline accessibility issues for producers by providing optionality to produce natural gas (stranded or otherwise) and associated liquids by converting this resource to synthetic diesel. The unconventional oil and gas boom and global anti-flaring initiatives have created an unprecedented opportunity for Rocky Mountain to be a world leader in the conversion of natural gas to high performance, zero sulphur, low emission and low Carbon Index synthetic liquid fuels," stated James H. Ross, the Corporation's Chief Executive Officer.
Integral Wealth Securities Limited acted as the Corporation's sole agent in connection with the brokered portion of the private placement of Units, and as its exclusive financial advisor in connection with various strategic matters. Shea Nerland LLP acted as the Corporation's legal advisor in connection with the private placement of Units and the private placement of Debentures.