Big Sky Energy Corporation
OTC Bulletin Board : BSKO

Big Sky Energy Corporation

August 29, 2005 09:01 ET

Big Sky Announces Completion of US$42 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) - Big Sky Energy Corporation (OTCBB:BSKO) (the "Corporation") is pleased to announce that it has completed its previously announced private placement which involved the sale of 30,975,000 Units for US$1.00 to International and US investors and 11,025,000 Special Warrants to Canadian investors for US$1.00 for total gross proceeds of US$42,000,000. The Units comprised one half of one subscription receipt and one half of one Common Share. Westwind Partners Inc. acted as sole agent for the Private Placement.

The Corporation will seek approval from its shareholders to increase its authorized capital to permit the issuance of additional Shares upon the exchange of the Special Warrants, and the proceeds from the sale of the Special Warrants will be held in escrow pending such approval.

Half of the 30,975,000 Subscription Receipts will be convertible into Common Shares upon the obtaining of written confirmation from the Ministry of Energy and Mineral Resources of Kazakhstan that the Corporation's subsidiaries have met certain work commitments. The proceeds from the sale of the Subscription Receipts (US$15,487,500) will be held in escrow pending such written confirmation.

Proceeds from the offering will be used to fund ongoing development and exploration drilling in the pre-Caspian Basin in Kazakhstan, further expansion of the Corporation's interests in the wider Caspian Region, and for general corporate purposes. Proceeds may also be used towards property acquisitions adjacent to the Morskoe field, the acquisition of additional production and/or producing fields, the addition of a new rig to expand drilling and exploration and the development and/or acquisition of undeveloped fields.

Big Sky Energy Corporation is an international oil and gas company looking to develop assets in the world's most prolific basins in order to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Kazakhstan's renowned pre-Caspian basin.

NOTE: The information contained in this press release contains forward looking statements which are based on the current expectations of the management of Big Sky Energy Corporation only, and actual results may differ materially. For a more detailed discussion of risks and other factors related to Big Sky Energy Corporation, please refer to its Form 10-KSB and Form 10-QSB reports, as filed with the U.S. Securities and Exchange Commission.

Neither the Units, Special Warrants, the Subscription Receipts nor the Common Shares sold in the Private Placement have been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements or the U.S. Securities Act is available. Hedging transactions involving these securities may not be conducted unless in compliance with the U.S. Securities Act.

Contact Information

  • Big Sky Energy Corporation
    Mr. Matthew Heysel
    Chairman
    (403) 234-8282
    (403) 265-8808 (FAX)
    mh@bigskycanada.com