Churchill Energy Inc.
TSX VENTURE : CEI

Churchill Energy Inc.

November 29, 2006 14:28 ET

Churchill Energy Inc. Closes $4 Million Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) -

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

Churchill Energy Inc. (TSX VENTURE:CEI) ("Churchill") is pleased to announce that it closed its previously announced private placement of 3,200,000 flow-through common shares on a "bought deal" basis at a price of $1.25 per flow-through common share for total gross proceeds of $4 million. The shares are subject to a four-month hold period that expires March 30, 2007. The offering was led by MGI Securities Inc., and included Acumen Capital Finance Partners Limited and CIBC World Markets Inc.

The proceeds will be used to incur Canadian exploration expenses on continued exploration of Churchill's oil and natural gas properties prior to December 31, 2007 and will be renounced to subscribers effective December 31, 2006.

Churchill is a Calgary-based junior oil and natural gas company with operations in Alberta. 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 the Company in this news release including management's assessment of future plans may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation.. As a consequence the Company's actual results, performance or achievements 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 the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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