Tuscany Energy Ltd. Completes Rights Offering and Raises $521,000

CALGARY, Oct. 1 /CNW/ - Tuscany Energy Ltd. ("Tuscany" or the "Corporation") announced today that it has completed its previously announced rights offering (the "Rights Offering"). At closing, Tuscany issued 8,685,635 common shares of Tuscany ("Common Shares") at a price of $0.06 per share for gross proceeds of $521,138. The net proceeds of the Rights Offering are anticipated to be used to reduce Tuscany's bank debt, which will allow the Corporation to use its cash flow, if any, to finance exploration and future development of petroleum and natural gas prospects in western Canada.

Humboldt Capital Corporation ("Humboldt") acquired 6,000,000 Common Shares in connection with the exercise of rights allocated to Humboldt under the Rights Offering and pursuant to the exercise by Humboldt of the additional subscription privilege, which was made available to all shareholders of Tuscany under the Rights Offering. Humboldt now owns an aggregate of 17,741,000 Common Shares. This represents an approximate 40.8% interest in Tuscany based upon the 43,453,471 Common Shares currently outstanding, after giving effect to the Common Shares issued in connection with the closing of the Rights Offering. Humboldt may be considered to be acting jointly and in concert with its major shareholder, Robert W. Lamond. Mr. Lamond acquired 278,000 Common Shares pursuant to the Rights Offering. After giving effect to the Rights Offering, Humboldt and Mr. Lamond beneficially own, collectively, 18,775,000 Common Shares, representing an approximate 43.2% interest in Common Shares currently outstanding. Humboldt and Mr. Lamond acquired the Common Shares pursuant to the Rights Offering for investment purposes and may, from time to time, as market opportunities exist or develop, increase or decrease their beneficial ownership of the Common Shares as permitted by applicable securities laws.

TSX Venture: TUS

Forward-Looking Information

Certain statements and information included in this press release constitute forward-looking statements and/or forward-looking information (collectively, "forward looking information"). Such forward-looking information involves unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Tuscany to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such forward-looking information is based on assumptions including the financial and operating attributes of Tuscany, the terms set forth in the rights offering circular in respect of the Rights Offering, anticipated financial performance, business prospects, strategies, regulatory developments, commodity prices and exchange rates, applicable royalty rates, tax laws, future well production rates and reserve volumes, the performance of existing wells, the success obtained in drilling new wells, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, which are subject to change based on commodity prices, market conditions, drilling success and potential timing delays. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. Additional factors that could affect the operations and financial results of Tuscany are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) under the profile for Tuscany. Furthermore, the forward-looking information contained herein are made as at the date hereof and Tuscany does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

    
    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

SOURCE TUSCANY ENERGY LTD.

For further information: For further information: John G. F. McLeod, President, TUSCANY ENERGY LTD., Telephone: (403) 264-2398, Fax: (403) 261-4072; Robert W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax: (403) 261-4072

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TUSCANY ENERGY LTD.

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