Cordero Energy Inc.
TSX : COR

Cordero Energy Inc.

June 02, 2006 09:02 ET

Cordero Energy Inc. Completes Common Share Offering

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) -

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

Cordero Energy Inc. (TSX:COR) ("Cordero" or the "Corporation") announced today that it has completed its previously announced common share offering and has issued 2,750,000 common shares at an issue price of $7.25 per share for total gross proceeds of $19,375,000. The common shares were sold via short form prospectus by a syndicate of underwriters led by Peters & Co. Limited and including Tristone Capital Inc., BMO Nesbitt Burns Inc. and CIBC World Markets Inc.

The net proceeds of this offering will be used to partially fund the Corporation's expanded capital program of $65-68 million, including the expansion of land acquisition and drilling activities in central and northern Alberta; development activities at Malmo, Alberta; and for general corporate purposes.

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.

The common shares have not been registered under the United States Securities Act of 1933, or the securities laws of any state of the United States, 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.

The Toronto Stock Exchange has neither approved or disapproved of the contents of this press release.

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
    Email: info@corderoenergy.com
    Website: www.corderoenergy.com