Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

November 08, 2006 15:55 ET

Churchill Energy Inc. Announces $4 Million Bought Deal Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 8, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES.

Churchill Energy Inc. ("Churchill")(TSX VENTURE:CEI) is pleased to announce that it has entered into a private placement flow-through common share financing agreement, on a bought deal basis, with MGI Securities Inc. Churchill will issue 3,200,000 common shares on a flow-through basis at a price of $1.25 per common share for total gross proceeds of $4 million.

The private placement financing is scheduled to close on November 29, 2006 and is subject to customary conditions including regulatory approval. The shares will be subject to a four month hold period ending on or about March 31, 2007.

The proceeds of the financing will be used to fund Churchill's ongoing exploration activities. Proceeds from the issuance of the flow-through common shares will be used to incur Canadian exploration expenses on Churchill's oil and natural gas properties prior to December 31, 2007 and will be renounced to subscribers of the flow-through common shares effective December 31, 2006.

Churchill is a Calgary-based junior oil and natural gas company with operations in Alberta and Saskatchewan. The common shares of Churchill are listed on the TSX Venture Exchange and trade under the symbol "CEI".

The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. 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.

Forward Looking Statements - Certain information regarding Churchill Energy Inc. (the "Company") set forth in this document, including management's assessment of the Company's future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. The Company'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, or if any of them do so, what benefits that the Company will derive therefrom.


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

Contact Information

  • Churchill Energy Inc.
    Kelly D. Cowan
    Chief Executive Officer
    (403) 693-3001
    Email: kcowan@churchillenergy.ca
    or
    Churchill Energy Inc.
    James P. Baker
    President
    (403) 698-8242
    Email: j.baker@churchillenergy.ca
    or
    Churchill Energy Inc.
    780, 700 - 4th Avenue S.W.
    Calgary, Alberta T2P 3J4