Ember Resources Inc.
TSX : EBR

Ember Resources Inc.

November 13, 2009 08:55 ET

Ember Resources Inc. Announces Completion of Marketed Common Share Offering

CALGARY, ALBERTA--(Marketwire - Nov. 13, 2009) -

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

Ember (TSX:EBR) announces that it has closed its previously announced equity offering of 23,530,000 Common Shares at a price of $0.85 per share, for total gross proceeds of approximately $20 million (the "Offering"). The Offering was conducted through a syndicate of underwriters led by RBC Capital Markets and including CIBC, FirstEnergy Capital Corp., GMP Securities L.P. and Peters & Co. Limited.

Ember's three major shareholders, KERN Energy Partners II, L.P. and KERN Energy Partners II U.S., L.P., Carlson Capital, L.P., and ARC Energy Venture Fund 3, ARC Energy Venture Fund 4 and ARC Energy Fund 5 (and the limited partnerships comprising such funds), purchased 4,440,677 Common Shares, 6,284,354 Common Shares and 4,800,169 Common Shares, respectively. In addition, certain directors, officers and associates of Ember purchased, in aggregate, 828,000 Common Shares.

Ember intends to use the net proceeds from the Offering to repay outstanding indebtedness under its revolving credit facility and thereafter, to drawdown approximately $9 million from the revolving credit facility to fund forecast capital expenditures for 2009 and 2010, all of which is to be used in connection with the anticipated drilling and completion of 40 net wells.

Reader Advisories

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 prior to registration or qualification under the securities laws of such jurisdictions. The Common Shares offered will not be registered under the 1933 Act and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements including anticipated levels of bank debt, anticipated capital expenditures and development plans. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity prices and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Actual results, performance or achievement could differ materially from those expressed in, or implied by, such 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. Except as required by law, Ember undertakes no obligation to update or revise any forward-looking statements. Additional information on these and other factors that could affect the Company's operations or financial results are included in the Company's filings with Canadian securities regulatory authorities.

Ember Resources Inc. is a resource company specializing in coalbed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember's shares are traded on the Toronto Stock Exchange under the trading symbol "EBR".

Contact Information

  • Ember Resources Inc.
    Mr. Douglas A. Dafoe
    President & CEO
    (403) 270-0803
    (403) 270-2850 (FAX)
    or
    Ember Resources Inc.
    Mr. Terry S. Meek
    Executive Vice-President & COO
    (403) 270-0803
    (403) 270-2850 (FAX)
    or
    Ember Resources Inc.
    Mr. Bruce C. Ryan
    Vice-President Finance & CFO
    (403) 270-0803
    (403) 270-2850 (FAX)