International PetroReal Oil Corporation announces private placement of up to $750,000



    CALGARY, Sept. 4 /CNW/ - International PetroReal Oil Corporation (TSX-V:
IPO) (the "Corporation") is pleased to announce that it intends to complete,
subject to TSX Venture Exchange approval, a private placement of up to
4,687,500 units (the "Units") of the Corporation to be issued at a price of
$0.16 per Unit for aggregate proceeds of $750,000. Each Unit will consist of
one common share in the capital of the Corporation (a "Common Share") and
one-half of one Common Share purchase warrant (a "Warrant"). Each Warrant will
entitle the holder to purchase a Common Share at an exercise price of $0.30 at
the option of the holder at any time until the second anniversary of its issue
date. The Corporation will have the option to force conversion if the Common
Shares trade over $0.50 for more than 20 consecutive trading days. Certain
finders may also be entitled to compensation in relation to investors which
they have introduced to the Corporation. Such compensation will include a
commission of 10% of the applicable proceeds, which may be payable in Common
Shares at a deemed price of $0.16 per share.
    The proceeds will be used to pay the Energy Resources Conservation Board
(ERCB) a deposit of C$595,000 in connection with the Corporation's purchase of
certain assets from Milestone Exploration Inc. and for general working capital
purposes.
    The private placement, including any applicable finder's fees, are
subject to regulatory acceptance, and the Common Shares and the Warrants to be
issued will be subject to a hold period of four months and a day from the date
of issuance, pursuant to applicable securities laws and the policies of the
TSX Venture Exchange.

    About International PetroReal Oil Corporation

    The Corporation is a Calgary-based, emerging, TSX Venture Exchange listed
company that is focused on exploration, development, and production of crude
oil and natural gas, primarily in North America. The Corporation's operations
are located in central and southern Alberta, southwestern Saskatchewan, and
Louisiana in the USA.

    Forward-Looking Statements

    This news release contains statements about oil and gas production and
operating activities that may constitute "forward-looking statements" or
"forward-looking information" within the meaning of applicable securities
legislation as they involve the implied assessment that the resources
described can be profitably produced in the future, based on certain estimates
and assumptions. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from those
anticipated by the Corporation and described in the forward-looking
statements. These risks, uncertainties and other factors include, but are not
limited to, adverse general economic conditions, operating hazards, drilling
risks, inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services, government regulation and foreign political risks, fluctuations in
the exchange rate between Canadian and US dollars and other currencies, as
well as other risks commonly associated with the exploration and development
of oil and gas properties. Additional information on these and other factors,
which could affect the Corporation's operations or financial results, are
included in the Corporation's reports on file with Canadian securities
regulatory authorities. We assume no obligation to update forward-looking
statements should circumstances or management's estimates or opinions change
unless otherwise required under securities law.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this press
    release.
    






For further information:

For further information: visit the Corporation's website at
www.petroreal.com or contact: Ernst Schlotter, President and Chief Executive
Officer, Email: research@sism.com, Address: No. 444, 505-8th Avenue S.W.,
Calgary, Alberta, T2P 1G2, Tel: (403) 269-2044, Fax: (403) 269-2042

Organization Profile

INTERNATIONAL PETROREAL OIL CORPORATION

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