Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

November 27, 2007 19:28 ET

Churchill Announces Board Appointment and Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - Churchill Energy Inc. ("Churchill") (TSX VENTURE:CEI) is pleased to announce that Philip G. Hughes has been appointed to the Board of Directors. Mr. Hughes is a Corporate Director who has served as President and Chief Executive Officer of five Canadian energy companies, as past Chairman of the Energy Council of Canada and past Chairman of Canadian Electrical Association. He was awarded the Alberta Centennial Medal.

Most recently Mr. Hughes was President & CEO of FortisAlberta. He is a Chartered Accountant (Alberta, England and Wales) with 26 years of diverse experience in the Canadian energy business. He graduated from University of Lancaster, England in 1977 with a Bachelor of Arts Honours, Economics degree.

The Company has granted 125,000 stock options to Mr. Hughes at the closing price on November 26, 2007, in conjunction with this appointment pursuant to its stock option plan. The options vest as to one third immediately, with an additional one third vesting on each of the next two anniversaries of the grant.

Churchill is also proceeding with a non-brokered private placement of up to a maximum of $3,001,250. Churchill will issue up to 10,000,000 common shares at a price of $0.30 or up to 8,575,000 common shares on a flow-through basis to incur Canadian development expenses at a price of $0.35 per common share. The total gross proceeds shall not exceed a maximum of $3,001,250. Directors, Officers and Insiders of Churchill are expected to participate in the private placement.

The private placement financing is scheduled to close on December 18, 2007, or such earlier or later date as determined by Churchill and is subject to customary conditions including approval of the TSX Venture Exchange and other applicable regulatory approvals.

The proceeds of the financing will be used to fund Churchill's 2008 capital expenditure program. Proceeds from the issuance of the flow-through common shares will be used to incur Canadian development expenses on Churchill's oil and natural gas properties prior to December 31, 2008 and will be renounced to subscribers of the flow-through common shares effective December 31, 2007.

THIS PRESS RELEASE DOES NOT CONSTITUE AN OFFER TO SELL SECURITIES OR A SOLICITATION FOR PURCHASERS TO BUY SECURITIES. THIS PRESS RELEASE IS NOT TO BE CONSTRUED AS A PUBLIC OFFERING IN ANY PROVINCE IN CANADA UNLESS A PROSPECTUS RELATING THERETO HAS BEEN ACCEPTED FOR FILING BY A SECURITIES COMMISSION OR SIMILAR AUTHORITY IN SUCH PROVINCE.

THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THE COMMON SHARES OF CHURCHILL HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAWS AND, THEREFORE, MAY NOT BE OFFERED FOR SALE IN THE UNITED STATES, EXCEPT IN TRANSACTIONS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.

This press release contains forward-looking statements. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. Should any of these risks or uncertainties materialize, or should assumptions underlying forward looking statements prove incorrect, actual results may vary materially from those described in this press release. Churchill believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The forward-looking statements contained in this newsletter are expressly qualified by this cautionary statement. Churchill does not assume any obligation to update these forward looking statements, except as required by law.

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

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