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Contract Exploration updates on possible LNG financing

LNG Industry,

Pieridae Energy has advised Contact Exploration that on 29 August 2014, Pieridae closed a non-brokered private placement of common shares pursuant to which it raised aggregate gross proceeds of US$ 22.2 million at a price of US$ 9 per share.

Goldboro LNG

Pieridae is a Canadian energy infrastructure development company that has partnered with Contact to secure natural gas supply opportunities for Pieridae's planned LNG terminal in Goldboro, Nova Scotia. Pieridae has previously announced that it has secured E.ON, Europe's largest utility, as a major offtake partner for the terminal and has also secured the required environmental permits to advance the Goldboro LNG project.

As a result of the financing, Contact has increased the carrying value of its investment in Pieridae to US$ 15,024,708, up from the previous carrying value of $1,669,412. Contact has an ongoing option to participate in Pieridae's equity financings, however, the company elected to not participate in the financing. As a result, Contact's equity ownership in Pieridae has decreased from 13.51% to 11.45%.

Pieridae and Contact formed Pieridae Production Limited Partnership (PPLP) in March 2014 to source, develop and produce natural gas to serve as significant portion of the feedstock for Pieridae's Goldboro LNG terminal.

Adapted from press release by Katie Woodward

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