TSX-V SYMBOL: ANG
CALGARY, Dec. 10 /CNW/ - AltaCanada Energy Corp. (the "Corporation")
today announces a non-brokered private placement of 5,100,000 common shares of
the Corporation ("Common Shares") at a price of $0.32 per share for proceeds
totaling $1,632,000 (the "Private Placement"). Proceeds from the private
placement will be used to continue the Corporation's drilling program in
Montana, which will focus upon Eagle gas targets and deeper oil targets on
AltaCanada's new exploration acreage on the Fort Belknap Indian Reservation.
The Private Placement will be subject to approval by the TSX Venture Exchange.
Pursuant to the policies of the TSX Venture Exchange and Ontario
Securities Commission Rule 61-501, the Private Placement is classified as a
"related party transaction" as James Collins, Michael Hibberd and Donald
Foulkes are directors of the Corporation (collectively the "Related Parties").
Each Related Party will subscribe for Common Shares of the Corporation. The
Purchasers, in particular Mr. Collins, will subscribe for 4,687,500 Common
Shares, Mr. Hibberd will subscribe for 312,500 Common Shares and Mr. Foulkes
will subscribe for 100,000 Common Shares.
The Private Placement was approved by two of the five directors, the
three Related Parties having abstained from the vote. The directors who voted
determined that exemptions from the formal valuation and minority shareholder
approval requirements under the Ontario Securities Commission Rule 61-501,
Insider Bids, Issuer Bids, Business Combination and Related Party Transactions
("Rule 61-501"), are available since the aggregate consideration to be paid by
the Related Parties is reasonable and does not exceed 25% of the market
capitalization of the Corporation as at December 7, 2007. Furthermore, the
fair market value of the consideration paid by the Related Parties in
connection with the Private Placement is for an amount less than $2,500,000.
At the closing of the Private Placement, the Related Parties will own or
control the following number and percentage of the outstanding Common Shares:
Mr. Collins: 13,105,091 Common Shares or 19.53%; Mr. Hibberd: 570,000 Common
Shares or 0.84%; and Mr. Foulkes: 1,972,400 Common Shares or 2.94%.
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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
BOEs MAY BE MISLEADING, PARTICULARLY IF USED IN ISOLATION. A BOE
CONVERSION RATIO OF 6 MCF : 1 BBL IS BASED UPON AN ENERGY EQUIVALENCY
CONVERSION METHOD PRIMARILY APPLICABLE AT THE BURNER TIP AND DOES NOT
REPRESENT A VALUE EQUIVALENCY AT THE WELLHEAD.
The corporate information contained in this news release may contain
forward-looking forecast information. The reader is cautioned that assumptions
used in the preparation of such information, although considered reasonably
accurate by AltaCanada Energy Corp. at the time of preparation, may prove to
be incorrect. The actual results achieved during the forecast period will vary
from the information provided herein and the variations may be material.
Consequently there is no representation by AltaCanada Energy Corp. that actual
results achieved during the forecast period will be the same in whole or in
part as that forecast.
For further information:
For further information: Don Foulkes, President & CEO, Telephone: (403)
265-9091 (ext 248), Fax: (403) 265-9021, Email: email@example.com; Don
Jackson, Exec VP & COO, (403) 265-9091 (ext 234), (403) 265-9021