North Peace Announces Bought Deal Financing for Gross Proceeds of $10 million


    TSX-V: NPE

    CALGARY, June 9 /CNW/ - North Peace Energy Corp. ("North Peace" or the
"Company") is pleased to announce that it has entered into an agreement to
sell, on a bought deal basis, 18,200,000 units ("Units") at a price of $0.55
per Unit to underwriters co-led by GMP Securities L.P. and Genuity Capital
Markets (the "Underwriters") for gross proceeds to North Peace of
approximately $10 million.
    Each Unit consists of one common share and one half of one common share
purchase warrant ("Warrant") of the Company. Each whole Warrant entitles the
holder to acquire one common share of the Company at a price of $0.75 per
share for a period of 18 months from the closing date of the offering (subject
to an accelerated exercise after six months if the common shares trade above
$1.00 per share for 20 consecutive trading days).
    The Underwriters have been granted an option to purchase up to 2,730,000
additional Units exercisable in whole or in part at any time up to 48 hours
prior to closing.
    Closing of the offering is scheduled for June 23, 2009 and is subject to
customary conditions including receipt of stock exchange approvals. The
securities issued pursuant to the offering will be subject to a four-month
hold period from the date of closing under applicable Canadian securities
    The majority of the net proceeds from the offering will be used to fund
the expansion of the Company's Cyclic Steam Stimulation ("CSS") pilot project
including the drilling of two additional horizontal CSS wells, engineering for
a 3,000 bbls/d pilot expansion and for operations in respect of the CSS pilot.
    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have not and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold in the United States except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable states securities laws.

    About North Peace

    North Peace has an early stage in-situ oil sands play in northern Alberta
with an estimated 2 to 3.1 billion barrels of Discovered Petroleum
Initially-In-Place. The Company has a 100% working interest in 86,400 acres of
Crown oil sands leases in the Peace River area. The lands have the benefit of
over 300 legacy logs and are surrounded by accessible oil and gas production
infrastructure. The target Bluesky zone is a regional sand, deposited in a
near shore marine environment at approximately 400 metres in depth. The
initial focus area has approximately 22 sections with 10 to 16 metres of
oil-bearing thickness, technically sufficient to advance a 30,000 bbl/d
commercial project. North Peace is currently advancing the development of its
resource using Cyclic Steam Stimulation, a robust and proven in-situ thermal
recovery process. The Company is currently operating a two well CSS pilot on
its lands.

    Discovered Petroleum Initially-In-Place

    Discovered Petroleum Initially-In-Place (equivalent to Discovered
Resources) is that quantity of petroleum that is estimated, as of a given
date, to be contained in known accumulations prior to production. The
recoverable portion of Discovered Petroleum Initially-In-Place includes
production, reserves, and contingent resources. There is no certainty that the
Discovered Petroleum Initially-In-Place will ever be produced.

    Forward-Looking Statements:

    Certain statements contained in this news release constitute
forward-looking statements that involve known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. The forward-looking
statements contained in this news release are based on a number of
expectations and assumptions that may prove to be incorrect. No assurance can
be given that these expectations will prove to be correct and such
forward-looking statements included in this release should not be unduly
relied upon. Actual results could differ materially as a result of changes in
North Peace's plans, changes in commodity prices, regulatory changes, general
economic, market and business conditions as well as production, development
and operating performance and other risks associated with oil and gas
operations including anticipated success of resource prospects and the
expected characteristics of resource prospects; anticipated capital
requirements, project rates of return and estimated project life; estimates of
original discovered resource; estimates of recovery factors; lack of
diversification; and overall technical and economic feasibility of the
Company's project. These statements speak only as of the date of this release
or as of the date specified in the documents accompanying this release, as the
case may be. The Company undertakes no obligation to publicly update or revise
any forward-looking statements except as expressly required by applicable
securities laws.

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

For further information:

For further information: Louis Dufresne, President and CEO; James
Glessing, Vice President, Finance & CFO, North Peace Energy Corp., 630, 505 -
3rd Street SW, Calgary, Alberta, T2P 3E6, Telephone (403) 262-6024, Facsimile:
(403) 262-6072, E-mail:,

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