Avatar Energy Ltd.

December 20, 2010 20:07 ET

Avatar Energy Ltd. Announces Closing of Financing

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2010) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG), today announces that it has completed a private placement financing for aggregate gross proceeds of approximately $1,202,500 subject to final acceptance by the TSX Venture Exchange. Pursuant to the private placement 2,312,499 common shares of the Corporation were issued at a price of $0.52 per common share. The Corporation has paid a 7% cash commission of $84,175 to Ironwood Energy Capital (HK) Ltd. in connection with the financing.

The common shares issued pursuant to the private placement will be subject to a four-month hold period expiring on April 21, 2010.

The Corporation will use the proceeds of the private placement to fund ongoing operations and for general administrative purposes.

There are 20,864,453 common shares of Avatar outstanding following the completion of the financing.

Avatar is an emerging junior oil and gas company with production in Alberta. The Corporation's area of focus is on properties in the Pembina Cardium light oil play that have long life high quality reserves with repeatable drilling upside.

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

  • Avatar Energy Ltd.
    Mr. Alan D. Jack, P. Eng
    President & Chief Executive Officer
    (403) 517-8818 x.225
    (403) 517-8815 (FAX)
    Avatar Energy Ltd.
    Ms. Lorie J. Hynes, CA
    Chief Financial Officer
    (403) 517-8818 x.226
    (403) 517-8815 (FAX)