Crocotta Energy Inc. Announces Increased Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Feb. 3, 2011) - CROCOTTA ENERGY INC. (TSX:CTA) ("Crocotta" or the "Company") is pleased to announce that it has agreed with the underwriters for its bought-deal financing announced today to increase the size of the offering from 10,900,000 common shares to 14,000,000 common shares at a price of $2.30 per common share for gross proceeds of $32,200,000. The additional proceeds from the increase in the size of the financing will be used to further fund Crocotta's Edson Bluesky and Dawson Montney developments and other projects and for general corporate purposes. All other terms of the financing, including the option granted to the underwriters to purchase an additional 1,635,000 common shares at the offering price on the closing date or within 30 days of closing, remain unamended.

The financing is being underwritten by a syndicate of underwriters co-led by GMP Securities L.P. and Canaccord Genuity Corp. and including Acumen Capital Finance Partners Limited, Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., National Bank Financial Inc. and Casimir Capital L.P. (collectively, the "Underwriters"). Completion of the Offering is subject to receipt of all necessary regulatory approvals. The Offering is expected to close on or about February 23, 2011.

The securities offered have not been registered under the U.S. 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 requirements. 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 State in which such offer, solicitation or sale would be unlawful.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated dates for the closing of the financing, the Company's potential exploration and development opportunities, the anticipated impact of the financing on the Company's capital budget. 

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Crocotta, including: (i) with respect to the anticipated closing date of the financing, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the financing, and (ii) with respect to the remaining forward-looking statements, expectations and assumptions concerning the success of future drilling and development activities.

Although Crocotta believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Crocotta 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the financing, risks associated with the oil and natural gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations changes to existing laws and regulations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Crocotta's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this document are made as of the date hereof and Crocotta 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.