Anderson Energy Ltd.

Anderson Energy Ltd.

June 28, 2005 09:00 ET

Anderson Energy Ltd. Announces $20 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - June 28, 2005) -


Anderson Energy Ltd. is pleased to announce that, further to today's announcement that it has entered into an agreement with Aquest Energy Ltd. pursuant to which the Company will acquire Aquest under a plan of arrangement, the Company has agreed to issue and sell, on a private placement "bought deal" basis to a syndicate of Canadian underwriters, 1,550,000 subscription receipts at a price of $6.50 each, and 1,250,000 common shares of the Company at a price of $8.00 each to be issued on a "flow through" basis under the Income Tax Act (Canada), for aggregate gross proceeds of $20,075,000.

The Company has also granted to the underwriters an option to purchase up to an additional 1,550,000 subscription receipts at a price of $6.50 each, for additional gross proceeds of up to $10,075,000.

The subscription receipts will be convertible on a one-for-one basis into common shares of the Company to be created pursuant to the plan of arrangement. The flow-through shares will also be common shares of the Company created pursuant to the plan of arrangement.

The proceeds from the sale of the subscription receipts and the flow-through common shares will be held in escrow pending completion of the Aquest transaction and, after release from escrow, will be used to repay indebtedness of the Company following the completion of the plan of arrangement and to fund its exploration, development and acquisition activities. The proceeds will be refunded to subscribers if the Aquest transaction is not completed.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Contact Information

  • Anderson Energy Ltd.
    J.C. Anderson
    (403) 256-7550
    Anderson Energy Ltd.
    Brian Dau
    President and Chief Executive Officer
    (403) 206-6000