West Announces Closing of Bought Deal Share Financing


    CALGARY, June 12 /CNW/ - West Energy Ltd. ("West" or "Company") (TSX:
"WTL") announces it has closed today its previously announced bought deal
share financing. The financing resulted in the issuance of 14,583,400 common
shares priced at $4.80 per share, pursuant to the terms of an underwriting
agreement entered into with a syndicate of underwriters, including 1,562,500
common shares issued at a price of $4.80 per share pursuant to the exercise
today of an over-allotment option granted by West to the underwriters. The
syndicate was led by GMP Securities L.P. and included RBC Dominion Securities
Inc., FirstEnergy Capital Corp. and Tristone Capital Inc. West now has 79.3
million common shares issued and outstanding. A portion of the net proceeds of
approximately $65.6 million will be used to eliminate the Corporation's bank
indebtedness and the balance to fund the Corporation's ongoing capital
expenditure program. The Corporation anticipates that its capital expenditure
program for the balance of 2007 will not be less than $50 million, consisting
of seismic acquisitions, drilling, testing, equipping, tie-in of wells and
facilities in the Pembina, Puskwa and other areas of interest all in the
province of Alberta.

    Reader's Advisory:
    Corporate information provided herein contains forward-looking
information with respect to the Company's operations and beliefs. The reader
is cautioned that assumptions used in the preparation of such information,
although considered reasonable by the Company at the time of preparation, may
prove to be incorrect. Actual results achieved during the forecast may vary
from the information provided herein and the variation may be material. There
is no representation by the Company that actual results achieved during the
forecast period will be the same in whole or in part as those forecast.
    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.

    %SEDAR: 00018134E

For further information:

For further information: Ken McCagherty, President and Chief Executive
Officer, Email: mccagherty@westenergy.ca, Direct Phone: (403) 716-3458 or Rick
Jaggard, Vice-President, Finance and Chief Financial Officer, Email:
rjaggard@westenergy.ca, Direct Phone: (403) 716-3457

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