Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

May 16, 2006 11:26 ET

Open Range Energy Corp. Announces Closing of $5.7 Million Flow-Through Common Share Financing

CALGARY, ALBERTA--(CCNMatthews - May 16, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Open Range Energy Corp. ("Open Range")(TSX:ONR) is pleased to announce today that it has closed the previously announced "bought deal" financing with a syndicate of underwriters led by GMP Securities L.P. and including Sprott Securities Inc., Tristone Capital Inc., Acumen Capital Finance Partners Limited and Haywood Securities Inc. whereby 1,000,000 flow-through common shares of Open Range were issued on a private placement basis at a price of $5.70 per flow-though common share, resulting in gross proceeds of $5.7 million.

Proceeds from this offering will be used to fund Open Range's ongoing exploration and development activities.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.

Reader Advisory

This disclosure contains certain forward looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: 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. Open Range's actual results, performance or achievement 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 so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    (403) 205-3704
    Website: www.openrangeenergy.com