Regal Energy Ltd.
TSX VENTURE : REG

Regal Energy Ltd.

February 01, 2007 16:30 ET

Regal Energy Announces Closing of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Feb. 1, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Regal Energy Ltd. (TSX VENTURE:REG)("Regal" or the "Corporation") announces it has completed the sale of 3,335,000 common shares at $0.20 per share for gross proceeds of $667,000 under its previously announced private placement (the "Private Placement"). The common shares issued are subject to a four month hold period. Nova Bancorp Securities Ltd. acted as agent (the "Agent") in connection with the Private Placement. The Agent exercised its over allotment option to sell up to an additional 3,339,922 common shares at a price of $0.20 per share, representing the difference between $1 million and the amount of gross proceeds raised through the Corporation's recent rights offering to shareholders. The Agent was paid a cash commission of $46,690 and was granted agent's options to purchase 333,500 common shares of the Corporation at a price of $0.20 per share for a period of 18 months. Insiders of the Corporation subscribed for a total of 425,000 common shares for gross proceeds of $85,000.

The Corporation now has a total of 37,287,590 issued and outstanding shares.

The TSX Venture has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release.

Contact Information

  • Regal Energy Ltd.
    Douglas O. McNichol
    President and Chief Executive Officer
    (403) 509-2581
    Email: dmcnichol@regalenergy.ca
    or
    Regal Energy Ltd.
    Wayne R. Wilson
    Vice President Finance and Chief Financial Officer
    (403) 509-2584
    Email: wwilson@regalenergy.ca
    or
    Regal Energy Ltd.
    Suite 1520, Life Plaza
    734 - 7th Avenue S.W.
    Calgary, Alberta T2P 3P8