Silverwing Energy Inc.

Silverwing Energy Inc.

May 29, 2006 09:00 ET

Silverwing Energy Inc. Announces Filing of Preliminary Prospectus for Initial Public Offering of Common Shares

CALGARY, ALBERTA--(CCNMatthews - May 29, 2006) -

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

Silverwing Energy Inc. ("Silverwing" or the "Company") is pleased to announce it has filed a preliminary prospectus with the securities regulatory authorities in Alberta, Ontario, and British Columbia in connection with an initial public offering (the "IPO") of up to $30.0 million of common shares (the "Common Shares") and up to $5.0 million of flow-through common shares (the "Flow-Through Common Shares"). The Company intends to use the net proceeds of the offering to fund its ongoing exploration and development activities.

The IPO is being led by Westwind Partners Inc. and Orion Securities Inc. (the "Agents"). The closing of the IPO is expected to occur during the week of June 26, 2006, and is subject to customary regulatory and exchange approvals.

In connection with the IPO, the Company has granted the Agents an over-allotment option, to cover over-allotments and for market stabilization purposes, exercisable for a period of 30 days from the closing of the IPO, to purchase, at the offering price, a number of Common Shares of Silverwing (the "Over-Allotment Shares") up to 15% of the number of Common Shares offered.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirement of the 1993 Act. A copy of the preliminary prospectus is available via SEDAR (www.sedar.com).

Silverwing Energy Inc. is an Alberta-based oil and natural gas company. Silverwing is engaged in the exploration for, and the acquisition, development and production of natural gas and crude oil with emphasis on the shallow to mid-depth hydrocarbon prone zones of the western Canadian sedimentary basin in Alberta and northeastern British Columbia.

Certain statements contained in this document are "forward-looking statements". The projections, estimates and beliefs contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results or events to differ materially from those anticipated in any forward-looking statements. Silverwing believes the expectations reflected in those forward-looking statements are reasonable; however Silverwing cannot provide any assurance that these expectations will prove to be correct.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.


Contact Information

  • Silverwing Energy Inc.
    Oleh Wowkodaw
    President and Chief Executive Officer
    (403) 538-5597
    (403) 263-5549 (FAX)
    oleh@silverwingenergy.com
    or
    Silverwing Energy Inc.
    Terry O'Connor
    Senior Vice President, Business Development
    (403) 538-5593
    (403) 263-5549 (FAX)
    toconnor@silverwingenergy.com
    or
    Silverwing Energy Inc.
    Martin Rude
    Vice President, Finance and Chief Financial Officer
    (403) 538-5591
    (403) 263-5549 (FAX)
    mrude@silverwingenergy.com