Breaker Energy Ltd.
TSX : WAV

Breaker Energy Ltd.

May 07, 2009 14:35 ET

Breaker Energy Ltd. Announces $23 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - May 7, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

Breaker Energy Ltd. (TSX:WAV) ("Breaker" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. (the "Underwriters") under which they have agreed to purchase for resale to the public, on a bought deal basis, 5,100,000 Class A Shares ("Class A Shares") at $4.60 each for aggregate gross proceeds of $23,460,000. The Underwriters will have the option to purchase up to an additional 15 percent of the total issue of Class A Shares, exercisable in whole or in part at the sole discretion of the Underwriters up to 30 days after the closing date, at the issue price.

Proceeds from the sale of the Class A Shares will be used to fund Breaker's on-going capital expenditure program with a focus on Alberta oil projects to capitalize on recent drilling incentives introduced by the Alberta government, and for general corporate purposes.

The Class A Shares shall be offered in all provinces of Canada (other than Quebec) by way of short form prospectus, and in the U.S. on a private placement basis pursuant to exemptions from registration requirements. The closing of the offering is expected to occur on June 2, 2009, and is subject to certain conditions including the approval of the Toronto Stock Exchange and the receipt of necessary regulatory approvals.

Breaker Energy Ltd. is a junior oil and gas company focused on creating shareholder value by growing per share production and reserves through acquisitions and a focused exploration, development and exploitation plan. Breaker trades on the TSX under the symbol WAV. Breaker has 46.0 million Class A Shares and 4.0 million options outstanding as at May 7, 2009.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Breaker within the United States. The securities of Breaker have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under 1933 Act and applicable state securities laws or an exemption from such registration is available.

Forward-looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering. The forward-looking statements are based on certain key expectations and assumptions made by Breaker, including the anticipated receipt of regulatory approvals and the approval of the TSX.

Although Breaker believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Breaker can give no assurance that they will prove to be correct. The closing of the offering could be delayed or the offering may not close at all if the required approvals are not obtained on a timely basis or some other condition to the offering is not satisfied.

The forward-looking statements contained in this press release are made as of the date hereof and Breaker undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

Contact Information

  • Breaker Energy Ltd.
    Dan O'Neil
    President & Chief Executive Officer
    (403) 215-5264
    or
    Breaker Energy Ltd.
    Max Lof
    Vice President, Finance & Chief Financial Officer
    (403) 215-5264
    Email: info@breakerenergy.com
    Website: www.breakerenergy.com