Atikwa Resources Inc.

November 17, 2010 09:00 ET

Atikwa Re-Prices and Closes Previously Announced Financing

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce the re-pricing and subsequent closing of its previously announced non-brokered private placement on November 9, 2010. 

The private placement raised $800,000.00 through the sale of 9,411,764 flow-through units ("FT Units") at a price of $0.085 per FT Unit, with all FT Units subscribed for by the MineralFields Group. Each FT Unit will consist of one flow-through common share of the Company and one non-flow-through common share purchase warrant (the "Warrants"). Each Warrant will entitle the holder to acquire one common share at an exercise price of $0.15 for a period of 12 months from closing. The previously announced terms were $0.075 per FT Unit and one Warrant at an exercise price of $0.10 for a period of 12 months from closing. All securities issued pursuant to the private placement are subject to a four month hold period that will expire March 10, 2011. In connection with the private placement, Atikwa agreed to pay finder's fees equal to 6.5% of the aggregate gross proceeds. The proceeds of the offering are intended to be used to fund the drilling of new horizontal well locations on the Company's light oil Spearfish play in Manitoba.

In other operations this week, the Company plans to retrieve down-hole pressure recording equipment and obtain additional bottom-hole liquids and gas samples from its recently announced discovery well in the Porcupine Hills. Once the pressure recording equipment is retrieved, the information will be analyzed to give a better understanding of the well's flow characteristics.

CEO Sean Kehoe stated; "We are all very interested in getting this flow and build up information back in addition to getting a better handle on what our gas to condensate ratio is down-hole. Once we have determined how big the tank is and how much condensate is involved, we will be in a better position to lay out plans to get this reservoir on production."

The Foothills re-entry is one in a series of four large Original Oil in Place and Original Gas in Place resource plays that make up the Company's portfolio. The other three programs include a Bakken light oil play in Saskatchewan, a Spearfish light oil play in Manitoba and a liquids rich natural gas play in the lower Mannville at Windfall, Alberta.

Pathway Asset Management and EnergyFields (affiliated with MineralFields Group), based in Toronto, Calgary and Vancouver, offer Canadian oil and gas tax-advantaged flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about Pathway Asset Management is available at and EnergyFields Group is available at First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws and, until, so registered, may not be offered or sold in the United States or any state or to, for the account of, U.S. persons absent registration or an applicable exemption from the registration requirements. This release does not constitute an offer in the United States.

This news release contains forward‐looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward‐looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward‐looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. Although the Company believes that the expectations represented in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements and you should not unduly rely on forward‐looking statements. The forward‐looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 release.

Contact Information

  • Atikwa Resources Inc.
    Sean Kehoe
    President and CEO
    (403) 233-6073