Regal Energy Ltd.
TSX VENTURE : REG

Regal Energy Ltd.

June 04, 2007 09:30 ET

Regal Energy Announces Private Placement Financing

CALGARY, ALBERTA--(Marketwire - June 4, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Regal Energy Ltd. (TSX VENTURE:REG) ("Regal") is pleased to announce its intention to issue up to 7 million Flow-Through Shares at $0.30 per Flow-Through Share through private placements (the "Private Placements").

Acumen Capital Finance Partners Limited will act as agent (the "Agent") to place with its clients, on a commercial best efforts agency basis, up to 7 million common shares of the Corporation to be issued on a flow-through basis (the "Flow-Through Shares") at a price of $0.30 per Flow-Through Share, for gross proceeds of $2,100,000 (the "Offering"). The Agent will be paid a cash commission of 7% of the gross proceeds of the Offering. The Agent has also agreed to the appointment of Nova Bancorp Securities Ltd. ("Nova Bancorp") as a 25% co-agent for the Offering. In this regard, Harry Knutson and Rick Wlodarczak, directors of Regal are also directors and officers of Nova Bancorp and abstained from the approval process for the Private Placements. Closing is expected to occur on or before June 21, 2007 (the "Closing"). The Closing of the Private Placements is conditional upon receipt of all necessary regulatory and stock exchange approvals and completion of due diligence. Flow-Through Shares issued under the Offering will be subject to a hold period of four months from the Closing date.

The expected gross proceeds of $2,100,000 will be used to fund exploration and development of Regal's properties located in Alberta and British Columbia.

ADVISORY REGARDING FORWARD LOOKING STATEMENTS

Certain information regarding Regal set forth in this news release, including management's assessment of the Company's future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing, and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Issued and Outstanding Common Shares: 37,287,590

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