Capitol Energy Resources Ltd.
TSX VENTURE : CPX

Capitol Energy Resources Ltd.

September 29, 2005 13:53 ET

Capitol Energy Announces Closing of $35 Million Common and Flow-Through Share Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 2005) -

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

Capitol Energy Resources Ltd. (TSX VENTURE:CPX) ("Capitol") is pleased to announce that it has closed its previously announced "bought deal" private placement of 6,452,000 common shares at a price of $4.65 per common share and 820,000 flow-through common shares at a price of $6.10 per flow-through common share for aggregate gross proceeds of approximately $35 million. The syndicate of underwriters led by Sprott Securities Inc. also included Tristone Capital Inc., FirstEnergy Capital Corp., and TD Securities Inc. The shares issued pursuant to the financing are subject to a four-month hold period expiring on January 30, 2006.

Proceeds of the financing will be used to fund ongoing activities including development at Dixonville and follow up on Capitol's successful exploration programs at Helen and Mulligan.

Following this financing, Capitol has approximately 48 million common shares outstanding.

Capitol is an emerging independent oil and gas company. Our business strategy involves building core areas through production acquisitions, development drilling and high quality exploration prospects thereby providing above average returns to our shareholders. We are primarily focused on pursuing natural gas opportunities in conjunction with economic oil opportunities that complement our efforts in the areas in which we operate.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information