Contact Exploration Inc.

Contact Exploration Inc.

October 08, 2010 08:00 ET

Contact Announces Private Placement

CALGARY, ALBERTA--(Marketwire - Oct. 8, 2010) -


Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE:CEX) is pleased to announce that it has commenced a non-brokered private placement for up to $4.5 million (the "Private Placement"). The Company will issue up to 22.5 million units ("Units") to exempt buyers on a private placement basis at a price of $0.20 per Unit, with each Unit consisting of one common share ("Common Share") of the Company and one half of one Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional Common Share at a price of $0.30 per Common Share at any time up to 2 years from the date of closing of the Private Placement. 

Proceeds from the proposed Private Placement will be used for to further the Company's operational program and for general working capital purposes.

All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the closing date. The Private Placement is subject to approval from the TSX Venture Exchange.

Operational Update

Further to its press release dated October 4, 2010, the Company advises that the first horizontal oil well in the Stoney Creek drilling program is now anticipated to spud on October 21, 2010. 

About Contact Exploration Inc.

Contact Exploration Inc. is a public company with a focus on Canadian East Coast onshore oil and gas production & exploration. Our philosophy is to operate production and exploration in our core area of Atlantic Canada and to participate through overrides and carried interests in certain non-core areas, such as coalbed methane in the Cumberland Basin, shale gas in the Windsor area, and exploration on the west coast of Newfoundland. Contact has onshore interests in Nova Scotia, Newfoundland and New Brunswick which includes the oil producing Stoney Creek Field and potential shale gas assets in the South Stoney Creek and Cocagne basin areas. In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Forward Looking Information

This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing of the Private Placement and the anticipated use of the proceeds of the Private Placement. Although Contact believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Contact is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The intended use of the proceeds of the pr Private Placement by Contact might change if the board of directors of the Company determines that it would be in the best interests of Contact to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information