ProEx Energy Ltd. Announces $50 Million Bought Deal Equity Financing and Expanded Credit Facility


    CALGARY, Aug. 22 /CNW/ - (TSX - PXE) - ProEx Energy Ltd. ("ProEx" or the
"Company") today announced that it has entered into an agreement with a
syndicate of underwriters led by Peters & Co. Limited and including BMO
Nesbitt Burns Inc., Canaccord Capital Corporation, FirstEnergy Capital Corp.,
Raymond James Ltd., Scotia Capital Inc., Cormark Securities Inc., GMP
Securities LP, and Tristone Capital Inc. (collectively, the "Underwriters"),
pursuant to which the Underwriters have agreed to purchase for resale to the
public, on a bought deal basis, 1,830,000 common shares (the "Common Shares")
at a price of $13.70 per Common Share and act as agents on a firm commitment
basis for the sale to the public of 1,420,000 flow-through common shares (the
"Flow-Through Shares") at $17.65 per Flow-Through Share for aggregate gross
proceeds of $50.1 million. The Common Share and Flow-Through Share offering is
subject to certain conditions including normal regulatory approvals. The
Common Shares and Flow-Through Shares will be offered in certain provinces of
Canada by way of a short form prospectus. Closing is expected to occur on or
about September 12, 2007.
    Net proceeds of the Common Share and Flow-Through Share offering will
fund ProEx's on-going capital investment program and may also be used to
temporarily reduce existing indebtedness until the foregoing is required.
ProEx will use the proceeds of the Flow-Through Share portion of the offering
to incur Canadian exploration expenses ("Qualifying Expenditures") prior to
December 31, 2008. ProEx will renounce the Qualifying Expenditures to
subscribers for the fiscal year ended December 31, 2007.
    The Company's credit facility has been expanded and includes the Bank of
Montreal as lead and the Bank of Nova Scotia. The Company's syndicated credit
facility has been increased to an aggregate $185 million from $150 million
providing further financial flexibility.
    ProEx expects to maintain its pace of drilling activities while
maintaining its financial flexibility to capture opportunities that may arise
in the current commodity pricing environment. The Company intends to expand
its Foothills presence by accelerating its land acquisition efforts as local
competitors withdraw from the area or redeploy capital elsewhere. ProEx
anticipates drilling approximately 60 to 70 wells prior to the end of the
winter drilling season in March 2008 and maintains a significant drilling
inventory in the Foothills which positions the Company to continue its growth
profile through 2008 and beyond. The drilling program will focus on the
Company's traditional Foothills Triassic reservoirs complemented by Cretaceous
targets and two to three untested Mississippian Debolt features.
    The securities to be offered in the financing have not been and will not
be registered under the United States Securities Act of 1933 or the securities
laws of any state of the United States and may not be offered or sold in the
United States except in transactions exempt from such registration.

    ProEx is a Calgary based junior oil and natural gas company with
operations focused in northeast British Columbia. Common shares of ProEx are
listed on the Toronto Stock Exchange under the symbol PXE.

    Forward Looking Statements - Certain information regarding ProEx Energy
Ltd. set forth in this document, including management's assessment of ProEx
Energy Ltd.'s future plans and operations, contains forward-looking statements
that involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond ProEx Energy Ltd.'s control, including the impact
of general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental
risks, competition from other producers, the lack of availability of qualified
personnel or management, stock market volatility and ability to access
sufficient capital from internal and external sources. ProEx Energy Ltd.'s
actual results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any of them do
so, what benefits that ProEx Energy Ltd. will derive therefrom.

    %SEDAR: 00020978E

For further information:

For further information: Mr. David Johnson, President & CEO, Mr. Steven
Allaire, Vice President Finance & CFO, ProEx Energy Ltd., 1200, 205 - 5th
Avenue S.W., Calgary, Alberta, T2P 4B9, Phone: (403) 216-2510, Fax: (403)
216-2514, Email:

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