Arctos Petroleum Corp.
TSX VENTURE : APO

June 11, 2007 07:00 ET

Arctos Receives Conditional TSX Approval for Debt Settlement, Announces Debenture Financing

CALGARY, ALBERTA--(Marketwire - June 11, 2007) -

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

ARCTOS PETROLEUM CORP. ("Arctos" or the "Company") (TSX VENTURE:APO) is pleased to announce that it has now received conditional TSX Venture Exchange approval to proceed with the closing of the debt settlements announced in the Company's press release of May 4, 2007. Arctos also announces that it will raise funds of up to $1.5 million from a debenture financing.

Arctos will settle $4,575,948 in outstanding net debt through the payment of $1,220,235 in cash and the issuance of 31,846,265 common shares of the Company. One creditor, with debt owed of $2,481,018 will be settled in full by the payment of a total of $1,171,485 in cash and the issuance of 11,405,745 common shares of the Company. Ten creditors, with net debt owed of $2,092,802, will be settled in full by the payment of a total of $48,750 in cash and the issuance of 20,440,520 common shares of the Company. The TSX Venture Exchange has conditionally approved the transactions contemplated herein subject to review and acceptance of Personal Information Forms from certain individuals who are associated with corporations who will become insiders of the Company.

Arctos plans to complete a non-brokered private placement of non-convertible debentures in the principal amount of up to $1.5 million. Proceeds from the private placement will be used to pay the cash portion of the aforementioned debt settlement, with the remainder applied to general working capital. The debentures will have a twelve-month term and shall bear interest at 10% per annum calculated and paid quarterly and any principal or interest outstanding under the debentures shall be secured against the general assets of the Company. The sale of the debentures is subject to approval of the TSX Venture Exchange. Insiders of the Company may purchase convertible debentures in the principal sum of up to $500,000.

The Company is now positioned to move forward with an active business plan that will be focussed on acquiring oil and gas assets together with a selective drilling program.

Arctos is an emerging junior oil and gas company with exploration, development, and production programs in Alberta and Saskatchewan.

ARCTOS PETROLEUM CORP.

William (Bill) S. Ward, President & CEO

Cautionary Note Regarding Forward-Looking Information: This press release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the use of proceeds of the offering, future financial or operating performance of the Company and its projects, the timing and amount of, and expenses related to, estimated future production, and the impact of the management change on the operations and success of the Company. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; changes in project parameters as plans continue to be refined; delays in obtaining governmental approvals or required financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • ARCTOS PETROLEUM CORP.
    William (Bill) S. Ward
    President & CEO
    (403) 531-1711
    (403) 531-1719 (FAX)
    Email: bward@arctos.ca