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CALGARY, Dec. 10 /CNW/ - SPITFIRE ENERGY LTD. ("Spitfire" or the "Corporation") (TSX Venture: SEL) announces that the TSX Venture Exchange ("TSXV") has accepted its Notice of Intention to commence a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Spitfire considers advisable, up to a maximum of 1,947,272 common shares of the Corporation ("Common Shares"), representing approximately 5% of the issued and outstanding Common Shares. Purchases of the Common Shares will be made on the open market through the facilities of the TSXV. The price which the Corporation will pay for any Common Shares purchased under the Bid will be the prevailing market price at the time of such purchase. The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by the Corporation, subject to the requirements of the TSXV.
The Bid will commence on December 10, 2009 and will terminate on December 9, 2010 or such earlier time as the Bid is completed or terminated at the option of Spitfire. National Bank Financial Inc. has agreed to act on the Corporation's behalf to make purchases of Common Shares pursuant to the Bid. Spitfire purchased and cancelled an aggregate of 2,047,129 Common shares pursuant to its previous normal course issuer bid, which expired on December 7, 2009.
Management of Spitfire believes that the market price of its Common Shares does not fully reflect the underlying value of the Common Shares and that the purchase of Common Shares would be beneficial to the Corporation's shareholders. The purchases will increase the proportionate interest of all remaining shareholders, and in addition, may increase liquidity to shareholders wishing to sell their Common Shares.
Spitfire Energy Ltd. is a junior oil and gas company engaged in the exploration for, development, and production of natural gas and crude oil reserves.
Forward Looking Statements - Certain information regarding Spitfire set forth in this news release, including expectations regarding the timing and occurrence of the normal course issuer bid and expected purchases of common shares thereunder are forward-looking statements that are based on certain key expectations and assumptions made by Spitfire. that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Spitfire's control, including the receipt of third party approvals, the impact of general economic conditions, industry conditions, stock market volatility and ability to access sufficient capital from internal and external sources. Spitfire.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, 2 accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Spitfire will derive therefrom. The forward-looking statements and information contained in this news release are made as of the date hereof and Spitfire. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE SPITFIRE ENERGY LTD.
For further information: For further information: Keith N. Chase, President and Chief Executive Officer, (403) 205-3400 x1; Danny W. Zivkusic, V.P. Finance and Chief Financial Officer, (403) 205-3400 x228