Kereco Energy Ltd.

May 23, 2006 08:14 ET

Kereco Energy Ltd. Announces $21.975 Million Flow-Through Financing

CALGARY, ALBERTA--(CCNMatthews - May 23, 2006) -

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 co-led by GMP Securities L.P. and Tristone Capital Inc. and including Canaccord Adams Inc., FirstEnergy Capital Corp., Sprott Securities Inc., Orion Securities Inc., Salman Partners Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc. to issue 1.5 million flow-through common shares of Kereco at a price of $14.65 per share for aggregate proceeds of $21.975 million (the "Offering"). Directors, officers and employees of Kereco have agreed to purchase 100,000 common shares pursuant to the Offering. The Offering is scheduled to close on June 8, 2006 and is subject to normal approvals by the Toronto Stock Exchange.

Proceeds of the Offering will be used to fund Kereco's existing 2006 and 2007 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