SANTA BARBARA, CA, Feb. 13, 2012 /CNW/ - Underground Energy Corporation
("Underground" or the "Corporation")(TSXV: UGE), an oil and gas
exploration and development company with assets in the Western United
States, today announced that it has granted a total of 1.55 million
stock options to new and existing members of management. 1.55 million
common shares of the Corporation have been reserved for these options.
Each stock option entitles the holder thereof to acquire one common
share of the Corporation at an exercise price of US$0.284 per share.
The stock options vest one-third (1/3) on the grant date, one-third
(1/3) on the first anniversary thereof, and one-third (1/3) on the
second anniversary thereof, and expire 10 years from the date of grant,
all in accordance with the Corporation's option plan.
Certain officers of Underground Energy Corporation recently exercised
500,000 warrants acquired in financings in 2009, well ahead of the
expiry date, through which US$375,000 was received by the Company.
After giving effect to the exchange ratio from the August 2011 merger
with Shenul Capital Inc. of 3.46:1, these warrants resulted in the
issuance of 1,730,000 shares of the Corporation. With these
transactions, the Company now has 203,882,379 common shares issued and
16,999,950 options outstanding. Together with the remaining
116,710,663 warrants, this results in fully diluted common stock for
the Corporation of 337,592,992.
As part of its ongoing process to further assess and prioritize its
assets, Underground has elected not to proceed with one of its Nevada
projects and, consequently, the Corporation's Nevada acreage has
declined by approximately 11,550 net acres. This change has reduced
the land under lease in Nevada to 31,286 net acres.
About Underground Energy Corp.
Underground Energy is focused on identifying, acquiring rights to,
exploring for, developing and producing oil reserves from shale
formations in North America using the latest exploration and recovery
techniques and technologies. Underground focuses on identifying and
acquiring sizable land positions and prospects in historically prolific
but under-explored shale formations as well as in emerging shale plays
that, in both instances, hold large volumes of prospective resources.
Underground currently holds hydrocarbon rights on approximately 71,015
net acres of highly prospective lands in California and Nevada with an
initial focus on the Monterey shale in California. Underground is
listed on the TSX Venture Exchange under the ticker symbol "UGE". For
more information on Underground, including a copy of the Company's
latest corporate presentation, please visit www.ugenergy.com. Underground's regulatory filings are available under the Company's
profile at www.sedar.com.
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 Underground Energy Corporation
For further information:
Chief Financial Officer
Underground Energy Corporation
Tel: 805-845-4700 x 17
Vice President, Corporate Development
Underground Energy Corporation