Border Petroleum Inc.
TSX VENTURE : BOR

February 02, 2011 13:51 ET

Border Announces Closing of Private Placement and Appointment of Additional Director

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2011) -

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

Border Petroleum Corp. ("Border" or the "Company") (TSX VENTURE:BOR) announces that it has closed its previously announced brokered private placement (the "Offering"). Border has sold 24,000,000 units of the Company ("Units") at a price of $0.25 per Unit for gross proceeds of $6,000,000. Each Unit consists of one common share of the Company ("Common Share") and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to acquire one Common Share at a price of $0.35 per share for 18 months from the closing date of issuance of the Offering (the "Closing Date"). All securities issued pursuant to the Offering will be subject to a four month hold period expiring on June 3, 2011.

Canaccord Genuity Corp. (the "Agent") acted as agent of the Company pursuant to the Offering. The Agent was paid a cash commission equal to 6% of the gross proceeds and was granted broker options ("Broker Options") to purchase 1,440,000 Units, with each Broker Option entitling the holder to acquire one Unit at a price of $0.25 per Unit for a period of 18 months from the Closing Date.

The net proceeds of the Offering will be used to fund the Company's Slave Point program at Red Earth and for general corporate purposes.

Appointment of Additional Director

Border is also pleased to announce the appointment of Mr. Eric Panchy as a director of the Company. Mr. Panchy is currently an independent businessman. From 2005 to 2010, Mr. Panchy was the Founder, President, CEO and a Director of Bountiful Resources Inc. ("Bountiful"), which was acquired by Barrick Energy Inc. in May 2010. Bountiful was a private oil and gas exploration and production company with core areas in the Red Earth and Garrington areas of Alberta. Prior to founding Bountiful, Mr. Panchy was the President of Wiser Oil Canada, a public oil and gas exploration and production company listed on the New York Stock Exchange, with core areas in the Red Earth, Evi and Wild River areas of Alberta, that was sold in May 2004 for an enterprise value of US$375 million. Mr. Panchy is a geologist with over 30 years of experience in the oil and gas industry predominantly finding and developing light oil reserves.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Border, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Border Petroleum Corp.
    Kelly Kimbley
    President & CEO
    (403) 538-8450
    (403) 444-5042 (FAX)