Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

October 08, 2009 13:40 ET

Arcan Increases Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire – Oct. 8, 2009) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. ("Arcan" or the "Corporation") (TSX VENTURE:ARN) is pleased to announce that the Corporation has reached an agreement with a syndicate of underwriters led by Wellington West Capital Markets Inc. (the "Underwriters") to increase its previously announced Offering to a total size of $11,250,000. Under the agreement, the Underwriters will now purchase from Arcan 9,000,000 common shares at an issue price of $1.25 per Common Share. All other terms and conditions of the Offering remain the same as previously announced. Closing of the Offering is subject to customary conditions, including approval by the TSX Venture Exchange.

About Arcan

Arcan Resources is a junior oil and gas company with a focused asset base in the Western Canadian Sedimentary Basin. The Corporation's properties provide high-netback production and substantial exploration and development growth opportunities. The Corporation is based in Calgary, Alberta.

Forward-Looking Information Advisory

The information and statements in this news release contains certain forward-looking information. This forward-looking information relates to future events or Arcan's future performance. In particular, this document contains forward-looking information and statements regarding: (i) the offering of common shares of the Corporation, (ii) the expected closing date of the Offering; (iii) the use of proceeds of the Offering; and (iv) future capital expenditures and projects. All statements other than statements of historical fact may be forward-looking information. Forward-looking information are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project" predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. This forward-looking information involves substantial known and unknown risks and uncertainties, certain of which are beyond the Corporation's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The outcome and timing of the proposed Offering, as well as the Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits that the Corporation will derive from them. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arcan Resources Ltd.
    Ed Gilmet
    President and Chief Executive Officer
    (403) 262-0321
    or
    Arcan Resources Ltd.
    Douglas Penner
    Vice President, Finance and Chief Financial Officer
    (403) 262-0321
    or
    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street SW
    Calgary, Alberta T2P 5H1
    (403) 262-0321
    info@arcanres.com
    www.arcanres.com