Bronco Energy Ltd.

Bronco Energy Ltd.

November 09, 2005 11:26 ET

Bronco Energy Ltd. Announces Closing of Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2005) - Bronco Energy Ltd. ("Bronco") is pleased to announce that it has completed its initial public offering, with gross proceeds to Bronco of $4,853,929. A total of 4,028,199 common shares of the Corporation at a price of $0.75 per common share and 2,036,422 flow-through common shares at a price of $0.90 per flow-through common share were issued pursuant to a prospectus of the Corporation dated October 27, 2005. The Corporation has filed for listing as a Tier 2 Oil and Gas Issuer on the TSX Venture Exchange ("TSX-V").

On or about November 17, the Corporation anticipates a final closing under the prospectus dated October 27, 2005 of up to 1,857,600 common shares (of which up to 185,800 may be issued as flow-through common shares) for additional gross proceeds of up to $1,421,070. The Corporation anticipates the offering will be fully subscribed, including the exercise of the over-allotment option.

Blackmont Capital Inc. acted as lead agent on the IPO. Subject to the fulfillment of all TSX-V requirements, it is expected that the Common Shares will commence trading on the TSX-V on or about November 10, 2005 under the trading symbol "BCF".

The directors, officers and insiders of Bronco, including their spouses and a company controlled by one of the directors, participated in the offering, acquiring an aggregate of 432,800 or approximately 7.14% of the offering.

As a result of the IPO closing, Bronco now has 9,340,567 common shares issued and outstanding (1,205,102 of which are subject to escrow restrictions), 1,290,654 common shares issuable upon the exercise of previously granted stock options and 606,462 common shares issuable upon the exercise of agent's options granted to Blackmont Capital Inc.

Bronco's board of directors and management team is comprised of the following individuals: Brian Alford (President, Chief Executive Officer and a Director), David Johnson (Chief Financial Officer), David Work (Vice President, Exploration), James Esposito (Chief Operating Officer), Neil Dore (Director), Dan Toews (Director), Glenn Proudfoot (Director) and Bryce Tingle (Director).

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

Contact Information

  • Bronco Energy Ltd.
    Brian Alford
    President and Chief Executive Officer
    (403) 699-8383
    (403) 693-0038 (FAX)
    or
    Bronco Energy Ltd.
    David Johnson
    Chief Financial Officer
    (403) 699-8383
    (403) 693-0038 (FAX)