BlueGrouse Seismic Solutions Ltd.
TSX VENTURE : BGH

October 27, 2005 13:05 ET

BlueGrouse Seismic Solutions Ltd. Announces Financing Arrangement

CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

BlueGrouse Seismic Solutions Ltd. (TSX VENTURE:BGH) ("BlueGrouse") is pleased to announce that it has entered into a financing agreement with Wellington West Capital Markets Inc. to issue, on a private placement "best efforts" agency basis, up to 6,400,000 units ("Units") at a price of $1.25 per Unit for aggregate gross proceeds of up to $8,000,000 (the "Offering"). Each Unit will be comprised of one common share ("Common Share") of BlueGrouse and one-half of one Common Share purchase warrant ("Warrant"), with each whole Warrant entitling the holder thereof to acquire an additional Common Share at a price of $1.80 per share for a period of 18 months following closing of the Offering. Proceeds of the Offering will be used to fund BlueGrouse's previously announced seismic data acquisition and for general corporate purposes. The Common Shares and Warrants comprising the Units will be subject to a hold period of 4 months from closing.

Closing of the offering is subject to customary conditions, including receipt of required regulatory approvals, and is expected to occur on or about November 10, 2005.

BlueGrouse is a Calgary-based company focused on providing the oil and natural gas industry with quick, reliable access to cost-effective, high resolution seismic data.

BlueGrouse trades on the TSX Venture Exchange under the symbol "BGH".

The Common Shares and Warrants comprising the Units offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • BlueGrouse Seismic Solutions Ltd.
    Todd A. Chuckry
    President and Chief Executive Officer
    (403) 264-4224
    or
    BlueGrouse Seismic Solutions Ltd.
    Stan G. Weber
    Chief Financial Officer
    (403) 264-4224