/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
CALGARY, April 5 /CNW/ - Vero Energy Inc. (TSX - VRO, "Vero" or the
"Company") is pleased to announce that it has closed its previously announced
private placement financing, on a bought deal basis, with an underwriting
syndicate co-led by GMP Securities L.P. and FirstEnergy Capital Corp., and
including Westwind Partners Inc., Orion Securities Inc., Paradigm Capital Inc.
and Tristone Capital Inc. pursuant to which Vero issued 1.5 million common
shares at a price of $5.55 per share and 1.5 million flow-through common
shares at a price of $7.25 per share for total gross proceeds of
The proceeds of the financing will be used to fund a portion of Vero's
2007 capital expenditure program and for general corporate purposes. Gross
proceeds from the sale of the flow-through common shares will be used to fund
ongoing exploration activities eligible for Canadian exploration expenses
which will be renounced in favor of the subscribers of the flow-through common
shares effective on or before December 31, 2007.
The shares issued pursuant to the private placement are subject to a four
month hold period under applicable securities laws expiring August 6, 2007.
Vero is a Calgary based, junior oil and natural gas exploration and
development company headquartered in Calgary, Alberta, Canada. Vero's common
shares trade on the Toronto Stock Exchange under the symbol VRO.
The common shares and flow-through common shares offered have not been
and will not be registered under the United States Securities Act of 1933, as
amended and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirement.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Statements: Certain information regarding the Company in
this news release including the anticipated use of the net proceeds of the
private placement, may constitute forward-looking statements under applicable
securities laws and necessarily involve risks including, without limitation,
risks associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to retain
drilling rigs and other services, the timing and length of plant turnarounds
and the impact of such turnarounds and the timing thereof, delays resulting
from or inability to obtain required regulatory approvals and ability to
access sufficient capital from internal and external sources. Although Vero
believes that the expectations reflected in these forward looking statements
are reasonable, undue reliance should not be placed on them because Vero can
give no assurance that they will prove to be correct. Since forward looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties.
The forward looking statements contained in this press release are made
as of the date hereof and Vero 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
For further information:
For further information: Doug Bartole, President & CEO, at (403)
218-2063; Gerry Gilewicz, Vice-President Finance & CFO, at (403) 693-3170;
Scott Koyich, Investor Relations, (403) 215-5979; Internet: www.veroenergy.ca