Chamaelo Exploration Ltd.

Chamaelo Exploration Ltd.

July 27, 2005 13:57 ET

Chamaelo Exploration Ltd.: Closing Of Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 27, 2005) -

Not for dissemination to United States Newswire Services or dissemination in the United States

Chamaelo Exploration Ltd. ("Chamaelo") (TSX:CXN) is pleased to announce that it has completed the "bought deal" private placement led by Sprott Securities Inc., and including Tristone Securities Inc., Orion Securities Inc., GMP Securities Ltd., National Bank Financial Inc., Haywood Securities Inc. and Trilon Securities Corporation which was originally announced on July 6, 2005. Chamaelo issued 3,000,000 common shares at $7.50 for total gross proceeds of $22,500,000.

The net proceeds of the offering will be used for working capital and/or expanded capital expenditures and to fund the exploration and development of petroleum and natural gas reserves.

The total number of common shares issued and outstanding as of the date hereof is 20,367,344.

Forward Looking Statements - Some of the statements contained in this news release are forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although the Corporation believes that its expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors, which could cause actual results to differ from these forward-looking statements, include the potential that the Corporation's projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated or disclosed in the Corporation's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Contact Information

  • Chamaelo Exploration Ltd.
    Robert Zakresky
    President and Chief Executive Officer
    (403) 232-8575
    Chamaelo Exploration Ltd.
    Nolan Chicoine
    Vice President, Finance and Chief Financial Officer
    (403) 232-8575