Petro Field Industries Inc.

Petro Field Industries Inc.

May 25, 2006 11:38 ET

Petro Field Announces the Closing of the Private Placement

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) -


Petro Field Industries Inc. ("Petro Field") (TSX VENTURE:PF) is pleased to announce that it has successfully closed its private placement of debentures and units which was previously announced in news releases on April 20 and April 24, 2006. Total gross proceeds of $6,500,000.95 were successfully raised by Haywood Securities Inc. ("Haywood"). Petro Field paid a cash commission of 7.25% of the aggregate funds raised, and issued broker warrants in the amount of 7.25% of the total number of common shares issuable pursuant to the $1.40 conversion price of the debentures and common shares issued with the units. Each broker warrant entitles Haywood to purchase one common share at a price of $1.40 for a period of 18 months from the closing.

Petro Field issued a total of 3,095,239 units at $1.05 per unit (consisting of 3,095,239 common shares and 1,547,620 warrants) and 3,250 debentures at $1,000 per debenture, with an aggregate 2,320,500 warrants being issued along with the debentures. Each debenture is convertible to common shares of Petro Field on the basis of $1.40 per common share, and each warrant entitles the holder to acquire one common share at a price of $1.75 for a period of 18 months from closing. All securities issued pursuant to the private placement are restricted from trading until September 25, 2006.

Petro Field intends to use a portion of the proceeds from the private placement to close its acquisition of the business and assets of an oil and gas engineering and manufacturing services business, as outlined in an March 27, 2006 news release, and the additional funds raised will be used for general corporate purposes.

Petro Field Industries Inc. is a Calgary, Alberta - based fabricator of oil and natural gas production equipment. The Company also purchases, refurbishes as necessary, and sells used production equipment.

This News Release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Petro Field to be materially different from any future results, performances or achievements expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, fluctuations in the markets for oil and gas and related products and services, political and economic conditions, the demand for the products and services provided by Petro Field, industry competition and Petro Field's ability to attract and retain both customers and key personnel.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Petro Field Industries Inc.
    Bill Rollins
    President & CEO
    (403) 244-3333, ext. 102
    Telephone: (250) 717-1910
    Phoenix Communications Group
    Jason Shepherd
    Investor Relations
    (250) 717-1910