Argosy Energy Inc.
TSX : GSY

Argosy Energy Inc.

March 08, 2010 20:25 ET

Argosy Energy Inc. Announces Closing of Second Tranche of Private Placement for $2.7 Million

CALGARY, ALBERTA--(Marketwire - March 8, 2010) - ARGOSY ENERGY INC. ("Argosy" or the "Corporation") (TSX:GSY), a junior energy company focused on the acquisition, exploration, exploitation and development of oil and natural gas in Western Canada is pleased to announce that it closed the second and last tranche of it's previously announced non-brokered private placement financing (the "Financing") of common shares ("Argosy Shares") and common share purchase warrants ("Argosy Warrants") for gross proceeds of approximately $2.7 million.

Each whole Argosy Warrant shall entitle the holder thereof to receive one Argosy Share at an exercise price of $2.25 per share for a period of 18 months. The exercise period of the Argosy Warrants may be accelerated in the event that the 20 day trading volume weighted average price of the Argosy Shares meets or exceeds $3.00 during the period such warrants remaining remain outstanding. In addition, the Argosy Warrants will be subject to a warrant indenture which will provide for anti-dilution provisions.

The Argosy Shares and Argosy Warrants are subject to a hold period until July 9, 2010 under applicable securities laws.

The proceeds will be used to fund exploration of Argosy's current oil and gas properties and general working capital purposes.

Pursuant to the requirements of the TSX for shareholder approval where (i) under a private placement the number of listed securities (common shares) issuable is greater than 25% of the number of listed securities outstanding on a non-diluted basis if the price per security is less than the market price; (ii) on an acquisition where the number of securities issuable in payment of the purchase price exceeds 25% of the number of securities of the issuer outstanding on a non-diluted basis; and (iii) where the transaction materially affects control of the issuer, the Corporation received written evidence that holders of more than 50% of the voting securities of the Corporation are familiar with the terms of the Financing and are in favour of it.

GMP Securities LP acted as financial advisor to Argosy in connection with the Transaction and the Financing.

Cautionary Statements

This media release contains certain statements which constitutes forward-looking statements or information, including the use of the Financing proceeds. Although the Corporation believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. As such, readers are cautioned not to place undue reliance on the forward-looking information, as no assurance can be provided as to the future results, levels of activity or achievements. Risks include, but are not limited to: uncertainties and other actors that are beyond the control of the Corporation, risks associated with the oil and gas industry, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Corporation. Additional information identifying risks and uncertainties is contained in filings of the Corporation with Canadian securities regulators, which filings are available under the Corporation's profile at www.sedar.com.

Contact Information

  • Argosy Energy Inc.
    Mr. Peter Salamon
    President and CEO
    (403) 269-8846
    or
    Argosy Energy Inc.
    Mr. Tom Dalton
    Vice President Finance and CFO
    (403) 269-8846
    or
    Argosy Energy Inc.
    2100, 500 - 4th Avenue S.W.
    Calgary, Alberta
    investor@argosyenergy.com
    www.argosyenergy.com