NiMin Energy Corp.

NiMin Energy Corp.

April 22, 2010 11:09 ET

NiMin Energy Announces Pricing of Offering of Common Shares

CARPINTERIA, CALIFORNIA--(Marketwire - April 22, 2010) -


NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") is pleased to announce that it has agreed to the terms of its previously announced equity offering (the "Offering") of common shares of the Company ("Common Shares"). Pursuant to the Offering, NiMin will issue 8.0 million Common Shares at a price of $1.25 per share, for total gross proceeds of $10 million. Thomas Weisel Partners Canada Inc. (the "Agent") will act as sole agent with respect to the Offering.

The Company will also grant the Agent an option, exercisable up until 30 days following closing of the Offering, to purchase up to an additional 15% of Common Shares at the issue price to cover over-allotments and for market stabilization purposes.

The net proceeds of the Offering will be used by the Company: (i) to partially fund NiMin's 2010 capital expenditure program which includes the drilling of 11 additional development wells at the Company's Ferguson Ranch Field located in Park County, Wyoming at an estimated cost of approximately $950,000 per well and one well at the Company's Pleito Creek Field located in Kern County, California at an estimated cost of approximately $1,500,000; and (ii) for general corporate purposes.

The Common Shares will be sold in the provinces of British Columbia, Alberta, Ontario and Nova Scotia, on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and internationally pursuant to available exemptions.

Closing of the Offering is expected to occur on or about May 6, 2010 and is subject to receipt of all necessary regulatory approvals, including but not limited to the approval of the Toronto Stock Exchange. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

About NiMin Energy

NiMin Energy Corp., a Canadian company, is a California-based independent oil and gas exploitation and production company with principal operations in the U.S. in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and onshore areas of South Louisiana. Pursuant to the Company's report of estimated reserves at January 1, 2010, prepared in accordance with National Instrument 51-101, the Company has over 27 million barrels of oil equivalent proved and probable reserves -- 96% of which are oil in California and Wyoming.

Cautionary Statements

This news release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the proposed Offering, the proceeds of the Offering, the receipt of applicable regulatory approvals, and the anticipated use of the net proceeds of the Offering. The Offering will not be completed at all if these approvals are not obtained or some other condition to closing the Offering is not satisfied. Accordingly, there is a risk that the Offering will not be completed. The intended use of the net proceeds of the Offering by the Company might change if the board of directors of the Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, the forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks include, but are not limited to: the risks associated with the oil and gas industry (eg., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in the Company's Annual Information Form and other documents available at Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, NiMin does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

In this press release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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