Spry Energy Ltd. Closes Equity Financing and Entrance into a Participation Agreement

    CALGARY, March 16 /CNW/ - Spry Energy Ltd. ("Spry") announced that it has
closed a $5,662,550 financing (the "Offering") pursuant to an agreement with
Acumen Capital Finance Partners Limited, as lead agent, and Leede Financial
Markets Inc. (collectively, the "Agents"). The Offering consisted of 106,500
common shares of Spry at a price of $5.20 per share and 817,400 common shares
issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Flow
Through Shares") at a price of $6.25 per share. The Common Shares and
Flow-Through Shares issued pursuant to the Offering are subject to a
four-month hold period expiring on July 17, 2007. Participation in the
Offering by directors, officers and employees of Spry was $335,500 or
approximately 6% of the Offering. Proceeds of the Offering will be used to
advance Spry's 2007 capital program.
    Spry shall renounce Canadian Exploration Expenses to purchasers of the
Flow Through Shares such that $6.25 per share shall be deductible against the
subscribers' income for the fiscal year ended December 31, 2007 for each share
    Spry is also pleased to announce that we have entered into a
participation agreement with an industry partner in the Utikuma, Alberta area.
Spry will commit to spend approximately $3.4 million to earn a 55 percent
interest in 16,163 acres (8,890 net), four (2.2 net) existing gas wells and
associated facilities. Pipeline construction is currently underway to tie-in 3
of the wells prior to break-up.

    This press release shall not constitute an offer to sell or this
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any states
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.


    Certain information regarding Spry including management's assessment of
future plans and operations, may constitute forward-looking statements under
applicable securities laws and necessarily involve risks associated with oil
and gas exploration, production, marketing and transportation such as loss of
market, volatility of prices, currency fluctuations, imprecision of reserve
estimates, environment risks, completion from other producers and ability to
assess sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in
the forward-looking statements.

For further information:

For further information: Mr. Ken Bowie, President & CEO, Spry Energy
Ltd., 500, 101 - 6th Avenue S.W., Calgary, Alberta, T2P 3P4, Phone: (403)
265-7770, Fax: (403) 265-7010

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