Richards Oil & Gas Limited Announces Shareholder Approval of $10 Million Private Placement



    CALGARY, Aug. 10 /CNW/ - Richards Oil & Gas Limited (the "Company"), (TSX
Venture: RIX) announced today that it has received shareholder approval of its
previously announced offering of 31,250,000 subscription receipts.
    Each subscription receipt will be exchanged, without additional payment,
into units (the "Units") of the Company on a one-for-one basis. Each Unit
consists of one common share in the capital of the Corporation (a "Common
Share") and one-half (1/2) of one Common Share purchase warrant (each whole
Common Share purchase warrant, a "Warrant"). Each Warrant shall entitle the
holder thereof to acquire one (1) Common Share at a price of $0.40 until
5:00 p.m. (Calgary time) July 10th. 2009. All the Common Shares, Warrants and
the Common Shares issuable pursuant to the Warrants are subject to a
restricted trading period, which expires on November 11, 2007.
    Proceeds of this private placement will be used to significantly increase
gas production and revenue by accelerating the development of the Company's
Horseshoe Canyon coal bed methane ("CBM") properties and for general corporate
purposes.
    Octagon Capital Corporation, as agent, receives a further commission of
$210,000 as shareholder approval was obtained.
    The Company currently has 72,661,602 common shares issued and
outstanding.

    Richards Oil & Gas Limited (www.richardsoilandgas.com) is a Calgary-based
exploration company, involved in the development of crude oil and natural gas,
with an emphasis on the exploitation of CBM. With a significant land base and
industry-leading experience in the development of CBM projects, the Company is
at the forefront of the CBM industry in Western Canada. The Company is able to
capitalize on opportunities that create both short-term cash flow and
long-term value for its shareholders.

    The securities referenced herein have not and will not be registered
under the United States Securities Act of 1933 and may not be offered or sold
in the United States or to U.S. persons (as defined in Regulation S under the
1933 act) unless the securities have been registered under the 1933 act, or
are otherwise exempt from such registration.

    The TSX Venture Exchange has not reviewed and does not take
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00021365E




For further information:

For further information: Brad Turner, President & CEO, Richards Oil &
Gas Limited, Tel: (403) 265-8444, E-Mail: bturner@richardsoilandgas.com; Lonn
Bate, CFO, Richards Oil & Gas Limited, Tel: (403) 265-8444, E-Mail:
lbate@richardsoilandgas.com

Organization Profile

Richards Oil & Gas Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890