AltaCanada announces filing of final short form prospectus for rights
offering

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TSX-V SYMBOL: ANG

CALGARY, May 12 /CNW/ - AltaCanada Energy Corp. (the "Corporation") announces that it has obtained a receipt dated May 12, 2010 for a final short form prospectus (the "Prospectus") filed with the securities commission in the provinces of Alberta, British Columbia and Ontario, relating to its previously announced rights offering (the "Offering"). The Corporation is seeking to raise up to $7,513,577 in gross proceeds from the Offering.

Shareholders of record on May 26, 2010 will be entitled to receive one right ("Right") for each common share held. Each Right will entitle eligible holders to purchase 1.424 common shares of the Corporation at a price of $0.07 per common share. The exercise of Rights and the payment for common shares must be completed by 5:00 p.m. (Toronto time) on June 21, 2010 (the "Expiry Date"). Shareholders who fully exercise their Rights are entitled to subscribe, on a pro rata basis, for additional common shares, if available, that are not otherwise subscribed for on or before the Expiry Date.

ANG Partners, Ltd. has agreed, subject to certain terms and conditions, to purchase, at a purchase price of $0.07 per common share, all of the common shares of the Corporation not otherwise purchased pursuant to the exercise of Rights under the Offering (up to 71,714,286 common shares less the number of common shares it and its affiliates purchase on the exercise of Rights), on the Expiry Date to ensure that the Corporation raises gross proceeds of at least $5.02 million under the Offering. Members of the Management and Board of Directors of the Corporation will also exercise Rights.

Shareholders and purchasers of Rights should consult the Prospectus and their own legal and financial advisors to determine their rights and entitlements under the Offering.

Registered shareholders in eligible jurisdictions will receive a copy of the Prospectus and their Rights certificate by mail shortly after May 26, 2010. Shareholders who hold their shares in a brokerage account or with a nominee should contact such broker or nominee in order to exercise their Rights. More detailed information is contained in the Prospectus available on SEDAR at www.sedar.com.

The Corporation intends to use the net proceeds from the Offering to provide working capital for development and acquisition opportunities, for payments to creditors, including holders of $3.174 million of convertible debentures, and for general corporate purposes. In particular, the Corporation will seek to invest capital to drill oil prospects on the Corporation's substantial land holdings comprised of 254,000 net undeveloped acres in Montana and to bring on shut-in gas production to the extent practical to augment the existing cash flow of AltaCanada.

The Corporation is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana. For more information on the Corporation, visit www.altacanada.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTRUE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE ALTACANADA ENERGY CORP.

For further information: For further information: Don Foulkes, President & CEO, Telephone: (403) 265-9091 (ext 248), Fax: (403) 265-9021; Don Jackson, Exec VP & COO, (403) 265-9091 (ext 234), Fax: (403) 265-9021; Email: info@altacanada.com

Organization Profile

ALTACANADA ENERGY CORP.

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