Breaker Energy Ltd. announces closing of $5.5 million bought deal equity financing


    CALGARY, Nov. 29 /CNW/ - Breaker Energy Ltd. (TSX:WAV.A and WAV.B)
("Breaker" or the "Company") is pleased to announce that it has completed the
previously announced bought deal private placement of 800,000 Class A shares
issued on a "flow-through" basis (the "Flow-Through Shares") at an issue price
at $6.90 each for aggregate gross proceeds of $5,520,000. The hold period on
these shares expires on March 30, 2008. The shares were issued through a
syndicate of underwriters led by FirstEnergy Capital Corp. and including
Tristone Capital Inc., Blackmont Capital Inc., Dundee Securities Corporation,
Wellington West Capital Markets Inc., BMO Capital Markets and Scotia Capital
    Gross proceeds from the sale of the Flow-Through Shares will be used to
fund ongoing exploration activities eligible for Canadian exploration expenses
which will be renounced in favour of the subscribers of the Flow-Through
Shares effective on or before December 31, 2007.
    Breaker has expanded its 2007 capital program by an additional
$7.5 million to a total of $67.5 million, with an increased focus on
high-netback light oil projects at Irricana and Girouxville. At Breaker's
large light oil pool in Irricana, funds will be used to accelerate drilling
new horizontal wells, and to recomplete existing horizontal wells with
multiple fracture technology. As announced November 7th, Breaker has had
significant success in this pool, with its first two new wells significantly
outperforming the historical average well in the pool. Breaker's first
multiple fracture operation on a previously-drilled horizontal well resulted
in a more than tenfold increase in production rate, from 10 boe/d to a recent
average rate of 110 boe/d, approximately one month after being put back on
production. Breaker will also drill additional exploratory wells at
Girouxville, where it has recently demonstrated a 100 percent success rate
discovering high rate light oil pools.
    Breaker's financial and operational flexibility gives it the ability to
take advantage of current royalty rates via accelerated field activity to
maximize the net present value of its high netback light oil drilling
    A portion of the Flow-Through proceeds will also be invested in shooting
a 3D seismic program early in 2008 on Breaker's 100 percent working interest
high impact prospect in Monias, British Columbia. The prospect is a deep Leduc
reef with an unrisked potential target size of 1 TCF.

    Breaker Energy Ltd. is a junior oil and gas company focused on creating
shareholder value by growing per share production and reserves through
acquisitions and a focused exploration, development and exploitation plan.
    Breaker now has 36,183,754 Class A shares and 900,000 Class B shares
    Breaker's shares trade on the Toronto Stock Exchange under the symbols
WAV.A and WAV.B.

    This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of Breaker within the United
States. The securities of Breaker have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "1933 Act"),
or any state securities laws. Accordingly, the shares may not be offered or
sold in the United States or to U.S. persons (as such terms are defined in
Regulation S under the 1933 Act) unless registered under 1933 Act and
applicable state securities laws or an exemption from such registration is

    Forward-Looking Statements
    This press release contains forward-looking statements concerning the
Company's expectations of future production, cash flow, earnings and expansion
of its oil and gas property interests and concerning the Company's exploration
and development drilling, seismic operations, regulatory applications, payout
estimates, capital expenditures, number and drilling locations, seismic
acquisitions and facility upgrades. These statements are based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ from those anticipated. These risks include,
but are not limited to: the risks associated with the oil and gas industry
(e.g., operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks), acquisitions, commodity price, price
and exchange rate fluctuation and uncertainties resulting from competition
from other producers and ability to access sufficient capital from internal
and external sources. Additional information on these and other risk factors
that could affect the Company's operations and/or financial results are
included in the Company's reports on file with Canadian securities regulatory
    The forward-looking statements or information contained in this news
release are made as of the date hereof and the Company 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.

    Oil and Gas Advisory
    This press release contains disclosure expressed as "Boe/d". Boe means
barrel of oil equivalent and Boe/d means Boe per day. All oil and natural gas
equivalency volumes have been derived using the ratio of 6,000 cubic feet of
natural gas to 1 barrel of oil. Boe equivalency measures may be misleading,
particularly if used in isolation. A conversion ratio of 6,000 cubic feet of
natural gas to 1 barrel of oil is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the well head.
    In this press release: (i) mmboe means million boe; (ii) boe/d means boe
per day; (iii) bbls/d means barrels per day; (iv) mcf means thousand cubic
feet; (v) mmcf means million cubic feet; (vi) mcf/d means thousand cubic feet
per day; and (vii) mmcf/d means million cubic feet per day.

    The TSX does not accept responsibility for the adequacy or accuracy of
    this release.

    %SEDAR: 00021180E

For further information:

For further information: Dan O'Neil, President & Chief Executive
Officer, (403) 215-5264, or Max Lof, Vice President, Finance & Chief Financial
Officer, (403) 215-5264,,

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