October 18, 2007 12:56 ET

Tuscany Increases Financing to $1,000,000

CALGARY, ALBERTA--(Marketwire - Oct. 18, 2007) - Tuscany Energy Ltd. (TSX VENTURE:TUS) announced that it is seeking to raise $750,000 by way of a non-brokered private placement which if fully subscribed will result in the issuance of up to 7,500,000 common shares on a flow-through basis at a price of $0.10 per share. The offering has been oversubscribed and Tuscany has increased the size of the offering to $1,000,000 which, if fully subscribed, will result in the issuance of 10,000,000 common shares on a flow-through basis at a price of $0.10 per share.

All of the securities issued will be restricted from trading for a period of four months. The issue of the above securities is subject to all regulatory approvals including the approval of the TSX Venture Exchange. The offering is anticipated to be completed on October 19, 2007.

Humboldt Capital Corporation together with R.W. Lamond, Humboldt's control shareholder, own 27% of the outstanding common shares of Tuscany. Humboldt has agreed to purchase $400,000 of the common share offering.

Subsequent to the completion of the issuance of 10,000,000 common share private placement, assuming the entire issue is subscribed for, there will be 36,550,836 common shares issued and outstanding, and 37,370,836 on a fully diluted basis. Assuming a minimum investment of $400,000, R.W. Lamond and Humboldt will own an aggregate of 11,085,000 common shares (30.3%) or 11,135,000 common shares (29.8%) on a fully diluted basis.

The net proceeds of the offering will be used in Tuscany's Canadian exploration and development program on expenditures which satisfy flow-through requirements.

Tuscany is an emerging junior oil and gas company engaged in the acquisition, exploration and development of oil and natural gas reserves in western Canada.

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

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

Contact Information

  • Tuscany Energy Ltd.
    Greg T. Busby
    President & CEO
    (403) 264-2398
    (403) 264-2399 (FAX)
    Tuscany Energy Ltd.
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)