Storm Exploration Inc.
TSX : SEO

Storm Exploration Inc.

May 15, 2006 08:45 ET

Storm Announces $15.58 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - May 15, 2006) -

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

Storm Exploration Inc. (TSX:SEO) Storm Exploration Inc. is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Tristone Capital Inc., Wellington West Capital Markets Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and Salman Partners Inc. Pursuant to the terms of the agreement, 1.9 million flow-through common shares will be issued on a bought deal private placement basis at a price of $8.20 per flow-through common share for gross proceeds of $15.58 million. Storm Exploration Inc. will apply the net proceeds of the issue for qualifying exploration activities. The issue is expected to close on June 1, 2006.

Once this equity issue has closed, Storm will have 41,842,000 shares outstanding on a basic basis and 43,953,000 shares outstanding on a fully diluted basis.

This news release is not for dissemination in the United States or to any United States news services. The common shares of Storm have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Contact Information

  • Storm Exploration Inc.
    Brian Lavergne
    President & CEO
    (403) 264-3520
    (403) 264-3552 (FAX)
    or
    Storm Exploration Inc.
    Donald McLean
    Chief Financial Officer
    (403) 264-3520
    (403) 264-3552 (FAX)