Canoro Resources Ltd.

Canoro Resources Ltd.

December 03, 2007 08:05 ET

Canoro Resources Ltd. Announces $30 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2007) -


Canoro Resources Ltd. ("Canoro" or the "Company") (TSX VENTURE:CNS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and CIBC World Markets Inc. and including Fraser Mackenzie Capital Inc., Jennings Capital Inc. and Westwind Partners Inc.(collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase on a bought deal basis 17,700,000 common shares ("Common Shares") at a price of $1.70 per Common Share for gross proceeds of approximately $30 million.

Canoro has also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 2,655,000 Common Shares to cover over-allotments, if any, for additional gross proceeds of approximately $4.5 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the Offering.

The proceeds of the common share offering will be used to fund Canoro's ongoing exploration and development activities in northeast India. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus.

Closing is expected to occur on or about December 20, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Operations Update:

In Amguri, the Company is currently in the final stages of preparing and submitting an interim full field development plan and upon approval by our partner and the Director General of Hydrocarbons, is planning on moving two drilling rigs to commence both appraisal and development well drilling. The plan calls for six development wells and two appraisal wells to be drilled in 2008. The Company is planning on having wells 10B and 11 on production in the first quarter of 2008.

The Company has initiated discussions with the offtaker (AGCL) of the gas which Canoro hopes would lead to a higher pricing for all gas produced from the Amguri field. The oil from Amguri is being priced at a premium to Bonny Light (as the reference price). Canoro is looking at the prospect of developing a market for the LPGs from the rich gas being produced in the future as well.

In AA-ON/7, the Company has scheduled the drilling of the Borkathani well in the first quarter of 2008 with the potential for an additional well depending upon results. The Company is also finalizing drilling locations in the sub-thrust on this concession which is expected to commence in the fourth quarter of 2008.

In AA-ONN/2003/2, the 2D seismic has been acquired, processed and is being interpreted. The 100 square kilometers of 3D seismic is being acquired and preliminary road construction has been budgeted and will commence in the near future. Drilling on this block is anticipated to begin in the fourth quarter of 2008.

The Company continues with its business development activities in Nagaland.

Canoro is a Canadian-based international oil and gas company operating in the Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest. Canoro is the operator with a 65% working interest in the AA-ON/7 exploration block. Canoro also has a 15% non-operated working interest in the AA-ONN 2003/2 exploration block.

Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Canoro's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, 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, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Canoro's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Canoro will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Canoro or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Canoro does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Canoro Resources Ltd.
    Les Kondratoff
    President and Chief Executive Officer
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    Rob McInnis
    Vice President, Business Development and Corporate Affairs
    (403) 543-5748
    (403) 543-5740 (FAX)
    Canoro Resources Ltd.
    700, 717 - 7th Ave SW
    Calgary, Alberta T2P 0Z3