Contact Exploration Inc.

Contact Exploration Inc.

June 04, 2008 07:45 ET

Contact Exploration Inc. Announces $10 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - June 4, 2008) -


Contact Exploration Inc. (TSX VENTURE:CEX) is pleased to announce it has entered into an agreement with Canaccord Capital Corporation of Calgary, Alberta as lead underwriter on behalf of a syndicate of underwriters, including Acadian Securities Inc., of Halifax, Nova Scotia, pursuant to which such underwriters have agreed to purchase, on a bought deal basis, 15,400,000 units of Contact at a price of $0.65 per unit. Each unit consists of one common share of Contact and one half of a common share purchase warrant. Each whole warrant will enable the holder to acquire one additional common share of Contact at a price of $0.95 for 24 months from the date of closing. Gross proceeds of the offering will be approximately $10,010,000.

In addition, subject to regulatory approval, the underwriters will be entitled to an option, exercisable for a period of 30 days from the date of closing, to purchase up to an additional 2,310,000 units at the offering price of $0.65 per unit, for additional gross proceeds of $1,501,500.

The net proceeds from this financing will be used for Contact's Nova Scotia and New Brunswick shale gas activities and for general corporate purposes.

All securities issued pursuant to this financing, including any securities issued in payment of commissions, will be subject to a four month hold period commencing on the date of closing.

About Contact Exploration Inc.

Contact Exploration Inc. is a junior exploration company with a focus on Canadian East Coast onshore exploration & production. Contact's holdings and operations are located in close proximity to one of the world's largest consumption markets, near strong pipeline and refining infrastructure and in mature jurisdictions with reasonable royalty structures in place.

Contact's philosophy is to operate production and exploration in our core area of Atlantic Canada, and to participate in unconventional shale gas exploration, such as the Windsor Shale Block in Nova Scotia and the underlying shale formation in New Brunswick (operated by Triangle Petroleum).

Contact has onshore interests in approximately 700,000 acres in Nova Scotia, approximately 70,000 acres in west Newfoundland and 165,000 acres in New Brunswick which includes the Stoney Creek Field (approximately 5,500 acres), a field with estimated proved and probable reserves of 1.2 million barrels of oil and 6.5 bcf of natural gas. In addition to the Atlantic Canadian properties, Contact has producing oil assets in south eastern Saskatchewan.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks detailed from time to time in Contact's Annual Information Form and Management's Discussion and Analysis, both of which may be found at

Not for distribution to United States newswire services or for dissemination in the United States.

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

Contact Information