Archer Petroleum Corp.

Archer Petroleum Corp.

October 13, 2010 10:00 ET

Archer Petroleum Announces Flow-Through Financing for its Radway Prospect in Alberta, Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2010) -


Archer Petroleum Corp (TSX VENTURE:ARK)(OTCQX:APEUF)(DBFrankfurt:A6VA), (the "Company"), is pleased to announce that the Company is proposing a non-brokered private placement offering (the "Offering") of up to maximum of 2,777,778 Units at $0.18 per Unit.

Each Unit will consist of one Flow-through Common Share (the "Flow-Through Shares") and one‐half of a transferrable Common Share Purchase Warrant. Each whole Warrant will be exercisable for a period of eighteen (18) months at an exercise price of $0.25 to purchase one non-Flow-through Common Share.

The Company intends to use the gross proceeds from the issue of the Flow-Through Shares to incur Canadian Exploration Expense or Canadian Development Expense that may be renounced as Canadian Exploration Expense under the Income Tax Act (Canada) by December 31, 2010. In that regard, the proceeds will be used for drilling wells on the Radway Prospect in Alberta.

All of the Offering issued is on a private placement basis to accredited investors and other eligible purchasers in Alberta, British Columbia and Ontario and the securities are subject to a four (4) month hold period after the closing date. Closing of the offering is anticipated to occur on or about November 26th, 2010. The Offering is subject to regulatory approval.

About Archer Petroleum:

Archer Petroleum Corp. is an independent oil and gas company focused on exploration and development in North America. Archer's assets include properties in the Western Canadian Sedimentary Basin of Alberta, the Permian Basin of West Texas, and the Bakken Shale of North Dakota. The Company's shares are listed on the TSX Venture Exchange under the symbol "ARK" and the OTCQX under the symbol "APEUF" and the DB Frankfurt exchange under "A6VA".

This Private Placement could be subject to finders' fees which will be paid in accordance with the TSX Venture Exchange policies and is subject to the final approval of the TSX Venture Exchange.


"Claude Perrier III"

Chief Executive Officer

Although Archer believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Archer can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (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), and commodity price, interest rate and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Archer undertakes no obligation 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.

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

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