Celtic Exploration Ltd.
TSX : CLT

Celtic Exploration Ltd.

April 26, 2011 08:44 ET

Celtic Exploration Ltd. Closes Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - April 26, 2011) -

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

Celtic Exploration Ltd. ("Celtic" or the "Corporation") (TSX:CLT) announces that it has closed the sale of an additional 750,000 common shares at a price of $20.30 per share, resulting in gross proceeds of $15,225,000 pursuant to the exercise of the over-allotment option (the "Over-Allotment Option") granted by Celtic to a syndicate of underwriters co-led by FirstEnergy Capital Corp. and RBC Capital Markets and which included Cormark Securities Inc., GMP Securities L.P., Peters & Co. Limited, CIBC World Markets Inc., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., Scotia Capital Inc. and TD Securities Inc. (collectively, the "Underwriters"). The Over-Allotment Option was granted to the Underwriters in connection with the Corporation's bought deal prospectus financing of 5,000,000 common shares at a price of $20.30 per share (the "Offering"), which closed on March 31, 2011. The total gross proceeds raised pursuant to the Offering and the Over-Allotment Option was $116,725,000.

The net proceeds from the Over-Allotment Option, being $14,616,000, will initially be used to temporarily reduce indebtedness under existing credit facilities, which may be subsequently redrawn and applied as needed to fund the Corporation's 2011 capital exploration and development program and for general corporate purposes.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Advisory Regarding Forward-Looking Statements

Certain information with respect to Celtic contained herein, including the anticipated use of net proceeds from the Over-Allotment Option, contains forward-looking statements. These forward-looking statements are based on assumptions and are subject to numerous risks and uncertainties, certain of which are beyond Celtic's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency exchange rate fluctuations, imprecision of reserve estimates, environmental risks, competition from other explorers, stock market volatility and ability to access sufficient capital. As a result, Celtic's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. Celtic does not intend, and does not assume any obligation, to update or revise these forward-looking statements except as required pursuant to applicable securities laws.

Contact Information

  • Celtic Exploration Ltd.
    David J. Wilson
    President and Chief Executive Officer
    (403) 201-5340

    Celtic Exploration Ltd.
    Sadiq H. Lalani
    Vice President, Finance and Chief Financial Officer
    (403) 215-5310

    Celtic Exploration Ltd.
    Suite 500, 505 - 3rd Street SW
    Calgary, Alberta, Canada T2P 3E6
    www.celticex.com