TG World Energy Corp. announces proposed financing



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

    (TSX-V: TGE)
    

    CALGARY, Oct. 16 /CNW/ - TG World Energy Corp. ("TG World" or the
"Company") announced today that it has entered into an agreement with
Wellington West Capital Markets Inc. ("Wellington West") to pursue a private
placement financing (the "Offering"), on a best efforts agency basis, of up to
$12 million of common shares of TG World, through a syndicate of agents
consisting of Wellington West, Tristone Capital Inc. and Jennings Capital Inc.
(the "Agents"). The agreement with Wellington West provides that the issue
price of TG World common shares to be sold in connection with the Offering
will be determined by TG World and Wellington West in the context of the
market. Under the agreement, the Agents have the option to increase the
Offering by up to an additional $3 million of common shares at the issue
price.
    The proceeds from Offering will be used to fund TG World's ongoing
exploration efforts in Alaska and Niger and for general working capital
purposes. The principal purpose of the Offering is to allow TG World to
advance its exploration program in Alaska while it awaits the receipt of funds
from the State of Alaska's exploration credit program. TG World expects to
receive initial funds on account of the exploration credit program in the
second half of October 2007.
    All securities issued in connection with the Offering will be subject to
a four month hold period under applicable securities laws in force in Canada.
The Offering is scheduled to close on or about November 20, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals, including the approval of the TSX Venture Exchange,
and completion of due diligence by the Agents.
    The securities being offered have not been registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in
the United States or to, for the account or benefit of, U.S. Persons absent
U.S. registration or an applicable exemption from the U.S. registration
requirements. This press release does not constitute an offer to sell or the
solicitation of an offer to purchase securities in the United States.

    Corporate Profile

    TG World is a Calgary-based, junior international oil and gas exploration
company. On March 18, 2006, TG World Energy Inc., a wholly-owned subsidiary of
TG World, entered into a major exploration project through the formation of a
joint venture with Brooks Range Petroleum Corporation. The BRPC / TG World
Joint Venture ("JV") was formed as an exploration strategic alliance covering
a large area of mutual interest on the Alaskan Central North Slope. The
Company's indirect interest in the Central North Slope Alaska Joint Venture
includes a 25 - 35% working interest in approximately 335,000 gross acres of
lease lands and an AMI under which additional lands may be acquired. The
Company has a 35% working interest in the Gwydyr Bay Prospect Area. The North
Shore No.1 well was cased as a potential oil producer in the 2006/07 winter
drilling season. The well is approximately 1,100 feet west of and appears to
be comparable to the 1974 Mobil Gwydyr Bay South No.1 well, which reportedly
flowed at an average rate of 2,263 bopd on production test from the same
formation. A full testing program of the North Shore No.1 well is expected to
be undertaken during the 2007/08 winter season, as well as the drilling of up
to three additional wells.
    Through a wholly-owned subsidiary, TG World holds a 20% carried interest
in the Ténéré Block, an oil and gas concession in the Republic of Niger,
Africa, measuring 71,155 square kilometers (17.3 million acres). The Ténéré
Block contains the northern half of the Termit - Ténéré Rift. The southern
half is adjacent to the Agadem Block, where six oil discoveries and one gas
discovery have been announced. CNPCIT, a unit of CNPC, holds the other 80% of
the Ténéré concession and acts as operator of the project. The first two wells
to test the Ténéré Block, Saha-1 and Fachi West-1 (drilled earlier in 2007),
were dry holes. The selection of the location for the third prospect is
expected to be finalized in the near term.

    
    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this news release and the TSX Venture Exchange does not
    accept responsibility for the adequacy or accuracy of this news release.
    

    Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements are often, but not
always, identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "intend", "could", "might",
"should", "believe" and similar expressions. Forward-looking statements are
based upon the opinions, expectations and estimates of management as at the
time such statements are made and, in certain cases, information provided or
disseminated by third parties, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or outcomes to
differ materially from those anticipated in or implied by such forward-looking
statements. These factors include, but are not limited to, such things as the
volatility of prices for oil and gas and other commodities, commodity supply
and demand, fluctuations in currency and interest rates, inherent risks
associated with the exploration and development of oil and gas properties,
ultimate recoverability of reserves, timing, results and costs of exploration
and development activities, availability of financial resources or third-party
financing, availability of drilling and related equipment and new laws and
regulations (domestic and foreign). Forward-looking information respecting the
scheduled closing date for the Offering is based upon the agreement entered
into with Wellington West and advice received from Wellington West.
Forward-looking information relating to the timing of receipt of initial funds
on account of the State of Alaska exploration credit program is based upon the
published terms of that program and TG World's understanding of administrative
practices developed by the State of Alaska in relation to the exploration
credit program. Forward-looking information respecting timing of testing of
the North Shore No.1 well and the drilling of additional wells in Alaska is
based upon prior test results obtained in connection with the drilling of the
North Shore No.1 well, the current exploration and development plan developed
by the Alaska joint venture participants and the current budget for
exploration and development activities approved by the Alaska joint venture
participants (which is subject to change). Forward-looking information
respecting anticipated drilling activities on the Ténéré Concession is based
upon advice received from the operator of the Ténéré Concession, CNPC
International Ténéré Ltd., which, in turn, is based, among other things, upon
the current budget, development plans and overall strategy for exploration of
the Ténéré Concession developed by CNPC International Ténéré Ltd., all of
which are subject to change. Although management of the Company believes that
the expectations reflected in such forward-looking statements are reasonable
and that information received from third parties is reliable, there can be no
assurance that such forward-looking statements will prove to have been
correct. Accordingly, readers should not place undue reliance upon the
forward-looking statements contained in this News Release and such
forward-looking statements should not be interpreted or regarded as guarantees
of future outcomes. The forward-looking statements of TG World Energy Corp.
contained in this News Release are expressed qualified, in their entirety, by
this cautionary statement. Additional information relating to various risk
factors to which TG World is exposed in the conduct of its business (and which
may affect the expectations or outcomes reflected in the forward-looking
statements contained in this news release) are described in publicly available
documents filed by TG World with certain securities regulatory authorities in
Canada, which are available through SEDAR, at www.sedar.com.





For further information:

For further information: Clifford M. James, President and CEO, (403)
265-4506; Paul Moon, Director, Corporate Communications, (403) 265-4506

Organization Profile

TG WORLD ENERGY CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890