Arsenal Energy Inc.
TSX : AEI
PINKSHEETS : AEYIF

Arsenal Energy Inc.

May 08, 2013 16:39 ET

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

CALGARY, ALBERTA--(Marketwired - May 8, 2013) -

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

Arsenal Energy Inc. (TSX:AEI) (PINKSHEETS:AEYIF) ("Arsenal") is pleased to announce that it has closed its previously announced bought deal equity financing (see Arsenal's press release of April 24, 2013) and has issued 3,750,000 common shares on a "flow-through share" basis at a subscription price of $0.54 per flow-through share ("Flow-Through Share") for aggregate gross proceeds of (Cdn) $2,025,000. All of the Flow-Through Shares are subject to a hold period under applicable securities laws until September 9, 2013. Casimir Capital Ltd. acted as underwriter of the offering.

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

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".

Certain statements and information contained in this press release, including but not limited to statements regarding the 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).

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
    www.arsenalenergy.com