Cirrus Energy Corporation announces closing of "bought deal" financing



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

    CALGARY, July 17 /CNW/ - Cirrus Energy Corporation (TSXV: CYR) (the
"Company") is pleased to announce that it has closed its previously announced
short form prospectus offering of common shares ("Common Shares") of the
Company (the "Offering") through a syndicate of underwriters (the
"Underwriters") led by Tristone Capital Inc. and including BMO Nesbitt Burns
Inc. and FirstEnergy Capital Corp., resulting in gross proceeds of $54.6
million. The Offering consisted of 12.0 million Common Shares issued at a
price of $4.55 per Common Share. The Company intends to use the estimated net
proceeds of approximately $51.6 million from the Offering to fund the
exploration, appraisal and development drilling on the K10-Bravo Oil Field as
well as drilling on other North Sea oil and gas assets. The Offering included
1.0 million Common Shares which were issued upon the exercise, in full, of an
over-allotment option which was granted by the Company to the Underwriters.
    This news release shall not constitute an offer to sell nor the
solicitation of any offer to buy the Common Shares in any jurisdiction. The
Common Shares may be offered or sold in other eligible foreign jurisdictions
and to U.S. buyers on a private placement basis pursuant to applicable
exemptions from the registration requirements in Rule 144-A or Regulation D of
the United States Securities Act of 1933 as amended (the "U.S. Securities
Act").
    The Common Shares have not been registered under the U.S. Securities Act
and may not be offered or sold in the United States except in transactions
exempt from such registration.

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and, following the Offering, has approximately
75.4 million fully diluted Common Shares outstanding.

    Forward-Looking Statements

    This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production, cash
flow and earnings. When used in this document, the words "anticipate",
"believe", "estimate", "expect", "intent", "may", "project", "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized. Any number
of important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs, operating
risks, production rates, reserve estimates, changes in general economic
conditions and other factors more fully described from time to time in the
reports and filings made by Cirrus with securities regulatory authorities.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00021839E




For further information:

For further information: David Taylor, President and Chief Executive
Officer, Pamela Orr, Vice President Finance and Chief Financial Officer,
Cirrus Energy Corporation, Suite 350, 926 - 5th Avenue S.W., Calgary, Alberta,
T2P 0N7, Canada, Website: www.cirrusenergy.ca, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530

Organization Profile

CIRRUS ENERGY CORPORATION

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