Avatar Energy Ltd.

Avatar Energy Ltd.

December 07, 2011 11:53 ET

Avatar Energy Ltd. Announces Non-Brokered Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2011) - Avatar Energy Ltd. ("Avatar" or the "Corporation") (TSX VENTURE:AVG), is pleased to announce a non-brokered private placement financing for aggregate gross proceeds of approximately $258,000 subject to acceptance by the TSX Venture Exchange.

Pursuant to the private placement, it is anticipated that 287,500 units will be issued at a price of $0.20 per Unit and 914,547 common shares will be issued on a flow-through basis at a price of $0.22 per share. Each Unit will be comprised of one common share (a "Common Share") of the Corporation and one common share purchase warrant (a "Warrant"), each Warrant entitling the holder thereof to purchase one additional Common Share (the "Warrant Share") at an exercise price of $0.40 per Common Share for a period of 18 months following the closing date of the private placement subject to the terms and conditions of the Warrant (including the right of the Corporation to accelerate the expiry date of the Warrants in certain circumstances). A finder's fee of 6% of the proceeds from the sale of securities may be paid in cash in connection with certain subscriptions under the private placement.

The common shares to be issued pursuant to the private placement will be subject to a four- month hold period.

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

Assuming all common shares are issued pursuant to the private placement as contemplated above, there will be 22,719,984 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)