North Peace Energy Corp.
TSX VENTURE : NPE

North Peace Energy Corp.

June 23, 2009 10:47 ET

North Peace Completes $11.6 Million Private Placement

CALGARY, ALBERTA--(Marketwire - June 23, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

North Peace Energy Corp. ("North Peace" or the "Company")(TSX VENTURE:NPE) is pleased to announce that it has completed its previously announced private placement offering co-led by GMP Securities L.P. and Genuity Capital Markets (the "Underwriters"). The Company has issued a total of 21,109,000 units ("Units"), at a price of $0.55 per Unit for gross proceeds of approximately $11.6 million. The total number of Units issued in the offering reflects the over-allotment option exercised by the Underwriters as well as certain Units placed on a non-brokered basis by the Company directly. Each Unit consists of one common share and half of one common share purchase warrant. Each full warrant will entitle the holder to acquire one common share at an exercise price of $0.75 per share until December 23, 2010 (subject to an accelerated exercise provision after six months if the common shares trade above $1.00 per share for 20 consecutive trading days).

The majority of the net proceeds from the offering will be used to fund the expansion of the Company's Cyclic Steam Stimulation ("CSS") pilot project including the drilling of two additional horizontal CSS wells, engineering for a 3,000 bbls/d pilot expansion and for operations in respect of the CSS pilot.

All of the securities issued by North Peace pursuant to the private placement are subject to a four-month hold period under Canadian securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

About North Peace

North Peace has an early stage in-situ oil sands play in northern Alberta with an estimated 2 to 3.1 billion barrels of Discovered Petroleum Initially-In-Place. The Company has a 100% working interest in 86,400 acres of Crown oil sands leases in the Peace River area. The lands have the benefit of over 300 legacy logs and are surrounded by accessible oil and gas production infrastructure. The target Bluesky zone is a regional sand, deposited in a near shore marine environment at approximately 400 metres in depth. The initial focus area has approximately 22 sections with 10 to 16 metres of oil-bearing thickness, technically sufficient to advance a 30,000 bbl/d commercial project. North Peace is currently advancing the development of its resource using Cyclic Steam Stimulation, a robust and proven in-situ thermal recovery process. The Company is currently operating a two well CSS pilot on its lands.

Discovered Petroleum Initially-In-Place

Discovered Petroleum Initially-In-Place (equivalent to Discovered Resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of Discovered Petroleum Initially-In-Place includes production, reserves, and contingent resources. There is no certainty that the Discovered Petroleum Initially-In-Place will ever be produced.

Forward-Looking Statements: Certain statements contained in this news release constitute forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this release should not be unduly relied upon. Actual results could differ materially as a result of changes in North Peace's plans, changes in commodity prices, regulatory changes, general economic, market and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations including anticipated success of resource prospects and the expected characteristics of resource prospects; anticipated capital requirements, project rates of return and estimated project life; estimates of original discovered resource; estimates of recovery factors; lack of diversification; and overall technical and economic feasibility of the Company's project. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.

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

Contact Information

  • North Peace Energy Corp.
    Louis Dufresne
    President and CEO
    (403) 262-6024
    (403) 262-6072 (FAX)
    or
    North Peace Energy Corp.
    James Glessing
    Vice President, Finance & CFO
    (403) 262-6024
    (403) 262-6072 (FAX)
    info@northpec.com
    www.northpec.com