C1 Energy Ltd.
TSX : CTT

C1 Energy Ltd.

May 25, 2005 08:30 ET

C1 Energy Ltd. Announces $10.0 Million Bought Deal Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - May 25, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

C1 Energy Ltd. ("C1 Energy" or the "Company")(TSX:CTT) to announce that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. and including GMP Securities Ltd. and FirstEnergy Capital Corp. pursuant to which the underwriters have agreed to purchase as principal on a "bought deal" private placement basis, 3,404,256 common shares ("Common Shares") and to act as agent with respect to the offering of 666,667 flow-through common shares ("Flow-Through Common Shares") provided that any Flow-Through Common Shares not sold as agent will be purchased on a bought deal private placement basis, at a price of $2.35 per Common Share and $3.00 per Flow-Through Common Share for gross proceeds to C1 Energy of approximately $10.0 million. The private placement is scheduled to close on or about June 14, 2005 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Proceeds of the offering will be used to expand C1 Energy's 2005 capital program and for general corporate purposes.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. 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.

Contact Information

  • C1 Energy Ltd.
    Hugh Pattillo
    President and CEO
    (403) 232-1115
    or
    C1 Energy Ltd.
    Gary Lobb
    Vice-President, Finance & CFO
    (403) 232-1115