Cordero Energy Inc.
TSX : COR

Cordero Energy Inc.

June 06, 2005 09:17 ET

Cordero Energy Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - June 6, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cordero Energy Inc. ("Cordero" or the "Corporation") (TSX:COR) announced today that it has entered into an agreement for the underwritten private placement of 3,000,000 common shares at an issue price of $4.65 per share for total gross proceeds of $13,950,000. The funds will be used to fund the Corporation's exploration and development activities.

The common shares will be issued through a syndicate of underwriters, led by Tristone Capital Inc. including Peters & Co Ltd., CIBC World Markets Inc. and BMO Nesbitt Burns Inc. Closing is subject to regulatory approval and is expected to occur on or about June 28, 2005.

Cordero is an independent exploration and development company pursuing conventional oil and natural gas production and reserves as well as coalbed methane development in western Canada. Cordero is based in Calgary, Alberta, and its common shares trade on the Toronto Stock Exchange under the symbol ("COR").

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

Contact Information

  • Cordero Energy Inc.
    David Elgie
    President and Chief Executive Officer
    (403) 265-7006
    or
    Cordero Energy Inc.
    Dean Setoguchi
    Vice President and Chief Financial Officer
    (403) 265-7006
    Website: http://www.corderoenergy.com