Avatar Energy Ltd.

April 29, 2011 11:12 ET

Avatar Energy Ltd. Announces Closing of Financing

CALGARY, ALBERTA--(Marketwire - April 29, 2011) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG), today announces that it has completed a private placement financing of 545,454 common shares ("Shares") of the Corporation at a price of $0.55 per Share for aggregate gross proceeds of approximately $299,999 (the "Financing"), subject to final acceptance by the TSX Venture Exchange. The Corporation has paid a 7% cash commission of $21,000 to Ironwood Energy Capital (HK) Ltd. in connection with the Financing.

The Shares issued pursuant to the Financing will be subject to a four-month hold period expiring on August 29, 2011.

With the completion of the Financing, there are now 21,517,937 Shares issued and outstanding.

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

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

    Avatar Energy Ltd.
    Ms. Lorie J. Hynes, CA
    Chief Financial Officer
    (403) 517-8818 x.226
    (403) 517-8815