Alpetro Resources Ltd.
TSX VENTURE : ALF

Alpetro Resources Ltd.

September 24, 2007 16:09 ET

Alpetro Resources Ltd.: Shares for Debt Settlement and Financing Engagement Letter

CALGARY, ALBERTA--(Marketwire - Sept. 24, 2007) - Alpetro Resources Ltd. ("Alpetro") (TSX VENTURE:ALF) announces that it has negotiated a shares for debt settlement with its President and Chief Executive Officer, Nazrul Islam, to settle a total debt of $114,442.41 by the issuance of 457,770 common shares in the capital of Alpetro ("Common Shares") at a deemed price of $0.25 per Common Share. The debt settlement is subject to the approval of the TSX Venture Exchange (the "Exchange").

Alpetro also announces that it has entered into an engagement letter with Wolverton Securities Ltd. (the "Agent") for a brokered private placement, on a commercially reasonable efforts basis, of a minimum of 1,200,000 units and up to a maximum of 3 million units (the "Units") at $0.25 per Unit. Each Unit will consist of one Common Share and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each whole Warrant shall entitle the holder thereof to purchase one Common Share for a period of 18 months following the closing date at a price of $0.35.

Closing of the minimum offering is anticipated to occur on or before October 15, 2007 and is subject to receipt of applicable regulatory approvals including approval of the Exchange.

The Common Shares issued in connection with each of the debt settlement and the offering and the Common Shares issuable upon exercise of the Warrants will be subject to resale restrictions for a period of four months plus one day from, respectively, the debt settlement date and the closing date of the offering. The Agent will receive a commission, payable in cash or Units, of 10% of the gross proceeds raised in the offering, and broker warrants (the "Broker Warrants") equal to 12% of the number of Units purchased. Each Broker Warrant will entitle the Agent to purchase one Unit at the issue price of the Units for a period of 18 months following the closing date.

The net proceeds of the offering will be used for development drilling, completion and well tie-in on Alpetro's properties.

This release was prepared by Alpetro's management who take full responsibility for its contents. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Alpetro disclaims any obligation to update forward-looking statements.

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

Contact Information

  • Alpetro Resources Ltd.
    Nazrul Islam
    President
    (403) 234-9006
    or
    Alpetro Resources Ltd.
    #2240, 444 - 5th Ave. S.W.
    Calgary, Alberta T2P 2T8