Kereco Energy Ltd.
TSX : KCO

February 01, 2007 07:59 ET

Kereco Energy Ltd. Announces $19.35 Million Flow-Through Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 1, 2007) -

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

Kereco Energy Ltd. ("Kereco") (TSX:KCO) is pleased to announce that it has entered into a bought deal financing with a syndicate of underwriters led by GMP Securities L.P. and including Canaccord Adams Inc., FirstEnergy Capital Corp., Orion Securities Inc., Sprott Securities Inc., Tristone Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. to issue 2.0 million flow through common shares of Kereco at a price of $8.60 per share for gross proceeds of $17.2 million (the "Offering"). The underwriters have also been granted an option to issue an additional 250,000 flow through common shares of Kereco at a price of $8.60 per share for further gross proceeds of $2.15 million, which would increase the Offering to total gross proceeds of $19.35 million. Directors, officers and employees of Kereco have agreed to purchase 130,000 flow through common shares pursuant to the Offering. The Offering is scheduled to close on February 14, 2007 and is subject to normal approvals by the Toronto Stock Exchange.

Proceeds of the Offering will be used to fund Kereco's existing 2007 and 2008
exploration capital programs.

Kereco is a growth oriented, junior natural gas exploration, development and production company operating exclusively in western Canada. Kereco's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "KCO".

Forward-Looking Statements

Certain information set forth in this document contains forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Kereco's control. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or any of them do so, what benefit, including the amount of proceeds, that Kereco will derive therefrom.

Contact Information

  • Kereco Energy Ltd.
    Grant Fagerheim
    President and Chief Executive Officer
    (403) 290-3401