Nevarro Energy Ltd.

Nevarro Energy Ltd.

May 15, 2006 11:11 ET

Nevarro Announces Equity Offering

CALGARY, ALBERTA--(CCNMatthews - May 15, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States.

Nevarro Energy Ltd. (TSX VENTURE:NEL) has entered into an agreement with Acumen Capital Finance Partners Limited to raise on a private placement best efforts agency basis $3,500,000 of gross proceeds through any combination of common shares in the capital of the Company ("Common Shares") at a price of $2.25 per Common Share or common shares to be issued on a flow through basis ("CDE Flow-Through Shares") at a price of $2.45 per CDE Flow-Through Share. The CDE Flow-Through Shares to be issued will be related to eligible Canadian Development Expense ("CDE"). Amounts renounced to subscribers for the CDE Flow - Through Shares will be eligible for 30% tax write-off in 2006 with the balance available on a declining balance basis in future years. The Agent will have an option to raise an additional $1,500,000 of gross proceeds on the same terms and conditions such option exercisable in whole or in part at the discretion of the Agent at any time prior to closing.

Closing is expected to occur on or about June 7, 2006, and the common shares issued under the offering will be subject to a four-month hold period.

The offering is subject to regulatory approval, including approval of the TSX Venture Exchange.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Nevarro Energy Ltd.
    J.W. Grant Robertson
    Vice-President Business Development
    (403) 231-1230