Great Plains Exploration Inc.

Great Plains Exploration Inc.

November 11, 2009 09:00 ET

Great Plains Files Qualifying Prospectus

CALGARY, ALBERTA--(Marketwire - Nov. 11, 2009) - Great Plains Exploration Inc. (TSX:GPX) ("Great Plains" or the "Company") is pleased to announce it has filed and obtained a receipt for its final short form prospectus qualifying for distribution (i) 9,533,000 Common Shares (the "Common Shares") of the Corporation issuable upon the exercise or deemed exercise of 9,533,000 Common Share special warrants (the "Common Share Special Warrants"); and (ii) 7,500,000 Common Shares issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") issuable upon the exercise or deemed exercise of 7,500,000 Flow-Through special warrants (the "Flow-Through Special Warrants") of the Corporation (the Common Share Special Warrants and the Flow-Through Special Warrants collectively referred to herein as the "Special Warrants") which were issued on October 29, 2009 (the "Closing Date") in connection with a previously announced private placement financing (the "Offering") through Research Capital Corporation, J.F. Mackie & Company Ltd. and Jennings Capital Inc. (the "Underwriters").

Each Common Share Special Warrant entitles the holder thereof to receive one Common Share of the Company and each Flow-Through Share Special Warrant entitles the holder thereof to receive one Flow-Through Share on the exercise or deemed exercise of the Special Warrant, as applicable, subject to adjustment in certain events. All unexercised Special Warrants will be deemed to be exercised on Monday, November 16, 2009, being the third business day after the receipt was issued for a final prospectus, resulting in the issue of 9,533,000 Common Shares and 7,500,000 Flow-Through Shares.

The Company shall use the net proceeds of the Offering derived from the Common Share Special Warrants to reduce debt and for general working capital and shall use the net proceeds of the Offering derived from the Flow-Through Share Special Warrants to conduct exploration activities on the Company's oil and gas properties. More specifically, the working capital raised will be primarily directed toward the tie-in of light oil reserves at Crossfire.

Great Plains is an oil and gas company engaged in the exploration for, and development and production of, oil and natural gas in Western Canada. The Common Shares are listed on The Toronto Stock Exchange under the symbol "GPX".

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: operations plans and outlook, expectations, opinions, forecasts, projections, guidance, the timing for obtaining a receipt for its prospectus, the use of working capital for the tie-in of light oil reserves at Crossfire, or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, regulatory approvals affecting tie-in construction, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President & CEO
    (403) 262-9620
    (403) 262-9622 (FAX)
    Great Plains Exploration Inc.
    Sean Bovingdon
    Vice-President Finance & CFO
    (403) 262-9620
    (403) 262-9622 (FAX)