Action Energy Inc.
TSX VENTURE : AEC

Action Energy Inc.

April 11, 2007 07:27 ET

Action Energy Inc. (TSX VENTURE:AEC) Announces $12 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - April 11, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Action Energy Inc. ("Action") (TSX VENTURE:AEC) announced today that it has reached an agreement with a syndicate led by Wellington West Capital Markets Inc. and including BMO Capital Markets, Dundee Securities Corporation and Jennings Capital Inc. to raise $12,008,000 on a bought-deal private placement basis.

The financing will consist of the placement of 3,160,000 flow-through shares at a price of $3.80 per share. The syndicate will also have the option to purchase an additional 790,000 flow-through shares at a price of $3.80 until 24 hours prior to the closing of the financing.

The financing is subject to normal regulatory approvals, including approval of the TSX Venture Exchange and is expected to close on or about May 1, 2007.

Action intends to use the proceeds from the financing to fund its exploration program for 2007.

Action Energy Inc. is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil in Alberta and Saskatchewan.

Action has approximately 25,895,171 Common Shares issued and outstanding which trade on the TSX Venture Exchange under the symbol "AEC".

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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

Contact Information

  • Action Energy Inc.
    Roger Tang
    Chairman and CEO
    (403) 264-1112
    (403) 264-1116 (FAX)
    or
    Action Energy Inc.
    R.D. (Bob) Bowman
    President & COO
    (403) 264-1112
    (403) 264-1116 (FAX)
    Website: www.action-energy.com