Arsenal Energy Inc.
TSX : AEI
PINKSHEETS : AEYIF

Arsenal Energy Inc.

April 24, 2013 08:33 ET

Arsenal Energy Inc. Announces $2.0 Million Flow-Through Share Bought Deal Financing

CALGARY, ALBERTA--(Marketwired - April 24, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arsenal Energy Inc. (TSX:AEI) ("Arsenal") is pleased to announce that it has entered into an agreement with Casimir Capital Ltd. (the "Underwriter" or "Casimir") to complete a bought deal private placement financing (the "Offering") of 3,750,000 flow-through common shares ("Flow-Through Shares") at a price of $0.54 per Flow-Through Share for aggregate gross proceeds of $2,025,000. The Company has granted the Underwriter an option ("the Underwriter's Option") exercisable at any time prior to 5 p. m. (Calgary time) on the business day prior to the Closing Date (as hereafter defined) to acquire up to an additional 562,500 Flow-Through Shares at $0.54 per Flow-Through Share for additional aggregate proceeds of up to $303,750.

The gross proceeds from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses ("CEE") for the purposes of the Income Tax Act (Canada) and such CEE will be renounced for the 2013 taxation year.

The Offering is scheduled to close on or about May 8, 2013 and is subject to the completion of formal documentation and regulatory approval, including the conditional approval of the Toronto Stock Exchange. Arsenal has engaged Casimir to act as the underwriter for the Offering. In consideration for their services, the Underwriter will receive a cash commission.

For further details on the Offering please contact either Arsenal or the Underwriter at the contact information provided below.

Arsenal is a junior oil and gas company engaged in the exploration for, and development and production of natural gas and oil reserves primarily in Alberta, Saskatchewan and North Dakota. Arsenal's common shares trade on the Toronto Stock Exchange under the symbol "AEI".

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Arsenal in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

Certain statements and information contained in this press release, including but not limited to statements regarding the expected closing date and the amount and use of proceeds contain forward-looking statements. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Arsenal's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling an processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Arsenal does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Arsenal's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

For further information on Arsenal, please visit our website at www.arsenalenergy.com or e-mail info@arsenalenergy.com.

Contact Information

  • Arsenal Energy Inc.
    Tony van Winkoop
    President and Chief Executive Officer
    (403) 262-4854 or Toll Free: 1 (866) 405-4854
    (403) 265-6877 (FAX)
    info@arsenalenergy.com

    Arsenal Energy Inc.
    Suite 1900, 639 - 5th Avenue SW
    Calgary, Alberta T2P 0M9

    Casimir Capital Ltd.
    Adam Thomas
    Managing Director, Investment Banking
    (403) 879-2771
    (403) 879-2780 (FAX)
    athomas@casimircapital.ca

    Casimir Capital Ltd.
    Suite 1000, 736 - 6th Avenue SW
    Calgary, Alberta T2P 3T7