Cordero Energy Inc.

Cordero Energy Inc.

May 12, 2006 08:33 ET

Cordero Energy Inc. Expands its 2006 Capital Program and Enters into $19.9 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - May 12, 2006) -


Cordero Energy Inc. (TSX:COR) ("Cordero" or the "Company") has entered into an agreement with a syndicate of underwriters led by Peters & Co. Limited., and including Tristone Capital Inc., CIBC World Markets Inc. and, BMO Nesbitt Burns Inc. pursuant to which the underwriters have agreed to purchase for resale to the public 2,750,000 common shares at a price of $7.25 per common share for gross proceeds of $19,937,500. The common shares will be offered in each of the provinces of British Columbia, Alberta and Ontario by way of short form prospectus. The financing is subject to all normal regulatory approvals and is expected to close on or about June 2, 2006.

Cordero Energy Inc. has expanded its 2006 capital program from its previously announced guidance of $50-55 million to $65-68 million. Net proceeds from the offering will be used to fund Cordero's on-going capital expenditures, including the expansion of land acquisition and drilling activities in central and northern Alberta; development activities at Malmo, Alberta; and for general corporate purposes.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The common shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Cordero is an independent exploration and development company pursuing conventional oil and natural gas production and reserves as well as coalbed methane development in western Canada. Cordero is based in Calgary, Alberta, and its common shares trade on the Toronto Stock Exchange under the symbol ("COR").

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

The Toronto Stock Exchange has neither approved or disapproved of the contents of this press release.

Contact Information

  • Cordero Energy Inc.
    David Elgie
    President and Chief Executive Officer
    (403) 265-7006
    Cordero Energy Inc.
    Dean Setoguchi
    Vice President and Chief Financial Officer
    (403) 265-7006