Ammonite Energy Ltd.

August 05, 2009 13:38 ET

Ammonite Energy Ltd. Announces Closing of Non-Brokered Private Placement, Appointment of New Director and Resignation of Director

CALGARY, ALBERTA--(Marketwire - Aug. 5, 2009) -


Ammonite Energy Ltd. (TSX VENTURE:AMO) ("Ammonite" or the "Company") is pleased to announce an initial closing of the private placement of common shares ("Common Shares") announced on June 2, 2009 for aggregate gross proceeds of $1,620,288.00, representing 5,400,960 Common Shares. The Common Shares issued are subject to a 4 month hold period from the date of the closing of the private placement. Ammonite may hold one or more closings to accommodate additional subscriptions for Common Shares.

Proceeds from the Offering will be utilized to fund ongoing exploration and development activities in the Wembley area of northwest Alberta and the Kindersley area of southwest Saskatchewan and for general corporate purposes.

Ammonite is also pleased to announce that Mr. James A. Richardson has been appointed to the board of directors (the "Board") of Ammonite. Mr. Richardson is a retired Vice President of James Richardson & Sons Limited and the current President and Director of Westmead Limited. A graduate of Queens University, Mr. Richardson has a broad business background and is a major investor in several technology and oil and gas companies. He is extremely active in the community being Senior Manitoba Director of Ducks Unlimited, Chairman of the Nature Conservancy of Canada (Manitoba Region), a trustee of the Richardson Foundation Inc. and the University of Winnipeg Foundation. He was Chair of Sport for the 1999 Pan American Games, Past President of Big Brothers of Canada, a former Regent of the University of Winnipeg and has served on the boards of numerous other community organizations. Mr. Richardson is currently on the Board of Directors of several private Canadian companies including Intelligent Hospital Systems, Ki Exploration Inc., LibreStream Technologies Inc., PSI Peripheral Solutions Inc., TelPay Incorporated, and Tundra Oil and Gas Ltd. The Board welcomes Mr. Richardson to the Board and looks forward to his ongoing contributions to Ammonite.

Ammonite further announces that Mr. John Gee has elected to step down from the Board to increase the level of independence of the Board. The Board is now comprised of five directors, three of whom are independent. Mr. Gee continues to serve as the Vice President, Engineering, Chief Operating Officer and acting Chief Financial Officer of Ammonite.

Ammonite currently has 33,357,897 Common Shares issued and outstanding which trade on the TSX Venture Exchange under the symbol "AMO".

Ammonite is a Calgary, Alberta based junior energy company primarily focused on light oil exploration, development and production in the Wembley area of northwest Alberta and Kindersley area of southwest Saskatchewan.

Ammonite is the result of a business combination with Ketchum Capital Corporation ("Ketchum"), a capital pool company listed on the TSX Venture Exchange, and Ketchum Acquisition Corporation pursuant to which Ketchum acquired all of the issued and outstanding common shares of Ammonite. The Acquisition constituted the Qualifying Transaction of Ketchum as defined in the policies of the TSX Venture Exchange. On January 19, 2009, the shareholders of Ketchum approved a change in the name of the Company from "Ketchum Capital Corporation" to "Ammonite Energy Ltd." and the consolidation of its common shares on the basis of one post-consolidation common share for every five pre-consolidation common shares. On January 22, 2009, the post-consolidation common shares of the Company commenced trading under the trading symbol "AMO".

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar 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 be 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. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Common Shares have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ammonite Energy Ltd.
    Mr. Stephen N. Ewaskiw
    President and Chief Executive Officer
    (403) 263-9505
    Ammonite Energy Ltd.
    Suite 1200, 520-5th Ave S.W.
    Calgary, Alberta, T2P 3R7