/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO
THE UNITED STATES/
CALGARY, Feb. 1 /CNW Telbec/ - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") is pleased to report that it has closed the previously announced
bought deal special warrant private placement (the "Offering"). Exall issued an aggregate of 5,750,000 special warrants (the "Special Warrants") at a price of CDN$2.00 per Special Warrant for aggregate gross
proceeds of $11,500,000. The aggregate number of Special Warrants
included 750,000 Special Warrants issued pursuant to the exercise in
full of the option granted to the Underwriters' (as defined below)
under the Offering. Each Special Warrant entitles the holder thereof to
receive one common share of the Company (each, a "Common Share") on the exercise or deemed exercise of the Special Warrants.
Dundee Securities Corporation acted as lead underwriter for the
Offering, together with, Clarus Securities Inc., Stonecap Securities
Inc. and D&D Securities Inc. (collectively, the "Underwriters"). The Underwriters received a cash commission of 6% of the gross
proceeds raised in the Offering.
Exall also announces that subsequent to the closing of the Offering it
filed its final short form prospectus (the "Prospectus") in order to qualify for distribution in all Provinces of Canada
(except Quebec) the Common Shares issuable upon the exercise or deemed
exercise of the Special Warrants. A receipt for the Prospectus (the "Receipt") was also issued today by the securities regulatory authorities in
each of the provinces of Canada, except Quebec. As a result, effective
February 2, 2011, the Special Warrants will be deemed to have been
exercised and the Company will issue an aggregate of 5,750,000 Common
Shares to the Special Warrant holders on such deemed exercise.
The net proceeds from the Offering will be used to expand and accelerate
Exall's capital program for the development of the Company's Gilwood
light oil exploration and development program in Mitsue, Alberta, and
for additional working capital purposes.
Exall is a junior oil and gas company active in its business of oil and
gas exploration, development and production from its properties in
Alberta, British Columbia and Texas. Exall is currently developing a
new oil discovery in north-central Alberta.
Exall has 59,050,169 common shares outstanding. The Company's common
shares are listed on the Toronto Stock Exchange under the trading
This news release contains forward-looking statements, which are subject
to certain risks, uncertainties and assumptions, including the
forward-looking statements relating to the closing of the offering, the
use of proceeds from the Offering, along with those relating to results
of operations and financial condition, capital spending, financing
sources, commodity prices and costs of production. By their nature,
forward-looking statements are subject to numerous risks and
uncertainties that could significantly affect anticipated results in
the future and, accordingly, actual results may differ materially from
those predicted. A number of factors could cause actual results to
differ materially from the results discussed in such statements, and
there is no assurance that actual results will be consistent with them.
Such factors include fluctuating commodity prices, capital spending and
costs of production, and other factors described in the Company's most
recent Annual Information Form under the heading "Risk Factors" which
has been filed electronically by means of the System for Electronic
Document Analysis and Retrieval ("SEDAR") located at www.sedar.com.
Such forward-looking statements are made as at the date of this news
release, and the Company assumes no obligation to update or revise
them, either publicly or otherwise, to reflect new events, information
or circumstances, except as may be required under applicable securities
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
For the purposes of calculating unit costs, natural gas has been
converted to a barrel of oil equivalent (boe) using 6,000 cubic feet
equal to one barrel (6:1), unless otherwise stated. The boe conversion
ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion
method and does not represent a value equivalency; therefore boe may be
misleading if used in isolation. This conversion conforms to the
Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
SOURCE Exall Energy Corporation
For further information:
|Exall Energy Corporation || |
|Frank S. Rebeyka |
Vice Chairman & CEO
Tel: (403) 815-6637
|Roger N. Dueck|
President & COO
Tel: (403) 237-7820
Please visit Exall Energy's website at: www.exall.com.
Renmark Financial Communications Inc.
Maurice Dagenais: firstname.lastname@example.org
Florence Liberski : email@example.com
Tel.: (514) 939-3989 or (416) 644-2020