ProEx Energy Ltd.
TSX : PXE

ProEx Energy Ltd.

November 28, 2008 08:18 ET

ProEx Energy Announces Bought Deal Flow-Through Common Share Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) -

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

ProEx Energy Ltd. ("ProEx" or the "Company") (TSX:PXE) is pleased to announce that it has entered into a private placement financing agreement, on a bought deal basis, with an underwriting syndicate led by FirstEnergy Capital Corp., and including BMO Capital Markets, Peters & Co. Limited, CIBC World Markets Inc., Cormark Securities Inc., National Bank Financial Inc., RBC Capital Markets, Scotia Capital Inc. and TD Securities Inc. pursuant to which ProEx will issue 1,260,000 common shares on a "flow-through" basis at $16.25 per common share for total gross proceeds of $20,475,000 pursuant to certain exemptions from prospectus requirements.

The private placement is expected to close on December 16, 2008, and is subject to customary conditions including receipt of all necessary regulatory approvals, including the Toronto Stock Exchange, and completion of definitive documentation.

Gross proceeds from the sale of flow-through common shares will be used to fund ongoing exploration activities eligible for Canadian exploration expenses which will be renounced in favor of the subscribers of the flow-through shares effective on or before December 31, 2008.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The flow-through common shares have not been nor will be registered under the United States Securities Act of 1933, as amended and they may not be offered or sold in the United States absent registration or an exemption from registration.

ProEx is a Calgary based junior oil and natural gas company with operations in northeast British Columbia. Common shares of ProEx are listed on the Toronto Stock Exchange under the symbol PXE.

Forward Looking Statements - Certain information regarding ProEx Energy Ltd. set forth in this document, including expectations regarding the timing and occurrence of closing of the private placement and the renunciation of the flow-through shares, completion of the definitive documentation, and the expected use of the proceeds from the private placement are forward-looking statements that are based on certain key expectations and assumptions made by ProEx Energy Ltd. that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond ProEx Energy Ltd.'s control, including the receipt of third party approvals, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. ProEx Energy Ltd.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance 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 that ProEx Energy Ltd. will derive therefrom. The forward-looking statements and information contained in this press release are made as of the date hereof and ProEx Energy Ltd. undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • ProEx Energy Ltd.
    Mr. David Johnson
    President & CEO
    (403) 216-2510
    (403) 216-2514 (FAX)
    or
    ProEx Energy Ltd.
    Mr. Steven Allaire
    Vice President Finance & CFO
    (403) 216-2510
    (403) 216-2514 (FAX)
    or
    ProEx Energy Ltd.
    Mr. Greg Kist
    Investor Relations Contact
    (403) 216-2510
    (403) 216-2514 (FAX)
    Email: ir@proexenergy.com
    Website: www.proexenergy.com