Nexstar Energy Ltd.

Nexstar Energy Ltd.

June 10, 2009 14:12 ET

Nexstar Energy Provides Operational Update and Announces Private Placement

CALGARY, ALBERTA--(Marketwire - June 10, 2009) - Nexstar Energy Ltd. ("Nexstar" or the "Company") (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) announces that field operations are expected to commence on June 11, 2009 for the drilling of the second horizontal Cardium well operated by Bonterra Oil and Gas Ltd. in the Pembina area of west central Alberta. The Company will be participating for a 32.18% working interest in the costs of this well to earn an equivalent interest before payout and a 20.68% working interest after payout.

Warrant Purchase

The Company also advises that it has completed the purchase of 20,300,000 share purchase warrants to acquire Class A Shares of the Company at a price of $0.05 per share for consideration of $0.001 per warrant. These warrants have now been returned to treasury and cancelled.

Private Placement

The Company also announces a private placement of up to $1,000,000 (the "Offering"), comprised of Class A Shares of the Company ("Class A Shares") issued at a price of $0.075 per Class A Share. The Company intends to complete the first closing of the Offering on or before June 11, 2009. The Company has firm commitments in excess of $600,000 for the first closing and anticipates completing the second closing before the end of June, 2009. The Class A Shares to be issued are subject to a four month hold and final approval by the TSX Venture Exchange. The funds from the Offering will be utilized by the Company on the continued exploration and development of the Company's petroleum properties.

New Director

The Company also announces the appointment of Dean Prodan, President of UTA Asset Management Corporation to the Company's Board of Directors.

About Nexstar Energy

Nexstar Energy is a newly reorganized junior oil and gas company that is focused on drilling multi-zone oil and natural gas prospects in western Canada, complemented by strategic acquisitions.

Reader Advisory

This news release may contain certain forward-looking statements, which include assumptions with respect to (i) production; (ii) future capital expenditures; (iii) funds from operations; (iv) cash flow; and (v) debt levels. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these 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, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Disclosure provided herein in respect of barrel(s) of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

28,632,869 Class A Shares

1,080,000 Class B Shares

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nexstar Energy Ltd.
    Peter A. Carwardine
    President and CEO
    (403) 263-6133 ext. 201
    (403) 263-3629 (FAX)
    Nexstar Energy Ltd.
    Brian J. Spilchen
    VP Finance and CFO
    (403) 263-6133 ext. 202
    (403) 263-3629 (FAX)
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5