Big Sky Energy Corporation
OTC Bulletin Board : BSKO

Big Sky Energy Corporation

July 29, 2005 16:42 ET

Big Sky Announces Increase to Proposed Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 29, 2005) - Big Sky Energy Corporation (OTCBB:BSKO) (the "Corporation") is pleased to announce that it has increased the potential size of its previously announced private placement. The Corporation now proposes to issue, by way of private placement, up to 42,000,000 shares of common stock (the "Shares") (or in the case of Canadian investors, securities that are in the form of Special Warrants convertible into Shares on the filing of a prospectus in Canada).

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. The offering is now scheduled to close on or about August 11, 2005, and is subject to, among other things, receipt of all necessary regulatory approvals.

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 leasing of a new rig to expand drilling and exploration and the development and/or acquisition of undeveloped fields.

Neither the Special Warrants nor the Shares 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.

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.

Contact Information

  • Big Sky Energy Corporation
    Mr. Matthew Heysel
    (403) 234-8282
    (403) 265-8808 (FAX)