UTS Energy Corporation
TSX : UTS

UTS Energy Corporation

October 30, 2007 07:56 ET

UTS Energy Corporation Announces $275 Million Financing

CALGARY, ALBERTA--(Marketwire - Oct. 30, 2007) -

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

UTS Energy Corporation ("UTS" or the "Company") (TSX:UTS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, with RBC Capital Markets as sole bookrunner and FirstEnergy Capital Corp., TD Securities Inc., and UBS Securities (Canada) Inc., as co-lead managers for the purchase by the underwriters on a bought deal basis, subject to regulatory approval, of 41.8 million common shares at a price of $6.10 per share and 2.65 million common shares issued on a flow-through basis at a price of $7.60 per share, for total gross proceeds of approximately $275 million. UTS has granted the underwriters an Over-allotment Option, exercisable in whole or in part up to 30 days following closing, to purchase up to an additional 6.67 million common shares at the same offering price. If the Over-allotment Option is fully exercised, the total gross proceeds of the equity financing will be approximately $316 million.

The offering is scheduled to close on November 19, 2007, and is subject to regulatory approval and completion of definitive documentation. The Company intends to use the net offering proceeds for operational, development and exploration expenses related to its oil sands assets and for general corporate purposes.

UTS Energy Corporation is based in Calgary, Alberta. The Company's common shares (UTS) are traded on the Toronto Stock Exchange.

FORWARD-LOOKING STATEMENTS: Except for statements of historical fact relating to the Company, this news release may contain certain "forward-looking statements" within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements in this news release are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking statements.

Contact Information

  • UTS Energy Corporation
    Dr. William J. F. Roach
    President and Chief Executive Officer
    (403) 538-7030
    or
    UTS Energy Corporation
    Wayne I. Bobye
    Vice President and Chief Financial Officer
    (403) 538-7030
    (403) 538-7033 (FAX)