Cannon Oil & Gas Ltd.

January 07, 2005 18:06 ET

Cannon Announces Closing Of Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANNON OIL & GAS LTD.

TSX VENTURE SYMBOL: COO

JANUARY 7, 2005 - 18:06 ET

Cannon Announces Closing Of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Jan. 7, 2005) - Cannon Oil & Gas Ltd.
("Cannon") (TSX VENTURE:COO) is pleased to announce that it has closed
its previously announced private placement financing. The private
placement consisted of 2,916,165 flow-through common shares
("Flow-Through Shares") of the Corporation at a subscription price of
$0.30 per Flow-Through Share, for gross proceeds of $874,849.50. The
private placement shares are subject to a hold period of four months,
expiring May 1, 2005. Leede Financial Markets Inc. received
non-transferable compensation warrants to purchase up to 26,110 Common
Shares of the Corporation at an exercise price of $0.30 per share on or
before December 31, 2005.

Cannon intends to use the proceeds from the private placement to fund
part of its 2005 capital exploration program and to incur and renounce
qualifying expenditures to the subscribers of Flow-Through Shares.

An insider of the Corporation subscribed for an aggregate of 50,000
Flow-Through Shares. Upon completion of the private placement, Cannon
will have 21,044,484 issued and outstanding Common Shares.

Further to the closing of a private placement of the Corporation which
was announced on December 10, 2004, Stephen Avenue Securities Inc.
received additional non-transferable compensation warrants to purchase
up to 10,500 Common Shares of the Corporation at an exercise price of
$0.30 per share on or before December 8, 2006.

Cannon is an emerging oil and gas exploration company based in Calgary,
Alberta.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cannon Oil & Gas Ltd.
    Robert J. Tessari
    President
    (403) 237-8407
    (403) 261-6809 (FAX)
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE.