Algonquin Oil & Gas Limited

December 24, 2008 09:51 ET

Algonquin Oil & Gas Announces Closing of Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Dec. 24, 2008) - Algonquin Oil & Gas Limited ("Algonquin" or the "Company") (TSX VENTURE:AQX) is pleased to announce that it has closed its previously announced financing for aggregate gross proceeds of $127,500. 1,275,00 common shares were issued on a flow-through basis at $0.10 per share to Belvedere Parkway Capital Management ("Belvedere"). Belvedere is a general partnership controlled by Gregory Stewart and Russell Stewart, both directors and officers of Algonquin. Belvedere, together with Gregory Stewart, hold an aggregate of 1,700,025 common shares or 17.2% of the total issued and outstanding common shares in the capital of the Company. The common shares issued under the private placement are subject to a hold period under applicable securities laws of 4 months which will expire on April 24, 2009.

The net proceeds of the offering will be used to incur eligible Canadian Exploration Expenses which may be renounced in favour of Belvedere for the 2008 taxation year. Following completion of the private placement, the Company will have an aggregate of 9,869,190 common shares issued and outstanding.

Algonquin Oil & Gas Limited is a junior oil and gas company focused on petroleum and natural gas production, lease acquisition and exploration, and development of crude oil and natural gas properties in Ontario, Canada.

Certain information regarding the Company contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Company is under no obligation to update or alter any forward looking statement. These risks include operational and geological risks and the ability of the Company to raise necessary funds for exploration. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.

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

Contact Information

  • Algonquin Oil & Gas Limited
    Gregory Stewart
    Chief Executive Officer
    (403) 245-3370