Culane Energy Corp.
TSX VENTURE : CLN

Culane Energy Corp.

October 05, 2010 17:31 ET

Culane Announces $3.3 Million Private Placement of Flow-Through Common Shares

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Culane Energy Corp. ("Culane") (TSX VENTURE:CLN) is pleased to announce that Culane has entered into an agreement with RBC Capital Markets for the private placement, on an underwritten basis, of 2,250,000 "flow-through" common shares (the "Flow-Through Shares") of the Company at a price of $1.45 per Flow-Through Share for gross proceeds of $3,262,500 (the "Offering").

The gross proceeds from the Offering will be used to fund ongoing exploration activities eligible for Canadian exploration expenses ("Qualifying Expenditures") to advance Culane's exploration program in southwest Saskatchewan. The Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2010.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. Closing of the Offering is expected on or about October 26, 2010.

Culane is a junior oil and gas company engaged in the exploration, development and production of oil and natural gas in Alberta and Saskatchewan. Culane's common shares trade on the TSX Venture Exchange under the trading symbol "CLN".

This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to the anticipated closing of the Offering, the use of proceeds therefrom and the tax treatment of the Flow-Through Shares. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Culane, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Offering. Although Culane 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 Culane 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 Offering or the failure to incur Qualifying expenditures as planned. Additional information on these and other factors that could affect Culane's operations and financial results are included in reports, including Culane's annual information form for the financial year ended December 31, 2009, on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Culane 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. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Culane's common shares and the Flow-Through Shares will not be and 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.

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

Contact Information

  • Culane Energy Corp.
    Donald D. Staus
    President and Chief Executive Officer
    (403) 263-2773
    dstaus@culaneenergycorp.com
    or
    Culane Energy Corp.
    Stewart Larsen
    Vice President of Finance and Chief Financial Officer
    (403) 263-2773
    slarsen@culaneenergycorp.com
    or
    Culane Energy Corp.
    Thomas H. Field
    Vice President, Engineering and Operations and
    Chief Operating Officer
    (403) 263-2773
    tfield@culaneenergycorp.com
    or
    Culane Energy Corp.
    420, 333 - 5th Avenue S.W.
    Calgary, Alberta T2P 3B6
    (403) 263-2773
    (403) 263-2776 (FAX)
    www.culaneenergycorp.com