Cyries Energy Inc.
TSX : CYS

Cyries Energy Inc.

October 20, 2006 08:36 ET

Cyries Energy Inc. Announces Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2006) -

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

Cyries Energy Inc. ("Cyries") (TSX:CYS) is pleased to announce today that it has entered into an agreement with a syndicate of underwriters to issue by way of a short form prospectus, 2,200,000 common shares of Cyries at a price of $12.50 per share. The offering will result in gross proceeds of $27,500,000. In addition, Cyries has provided the underwriters with an over-allotment option to purchase up to an additional 330,000 common shares at a price of $12.50 per share, for a period of 30 days from closing, which if exercised in full will result in total gross proceeds of $31,625,000.

Proceeds from the offering will be used to fund an increase in Cyries' 2007 capital expenditures from $130 million to $160 million. The majority of the increase to Cyries' 2007 capital expenditures will be focused on the Deep Basin, including the Gold Creek Halfway light oil pool.

The completion of the offering is subject to Cyries receiving all necessary regulatory approvals. The offering is expected to close on or about November 9, 2006.

Cyries Energy Inc. is a publicly traded Canadian energy company involved in the exploration, development and production of natural gas and crude oil in western Canada. Its common shares trade on the TSX under the symbol "CYS".

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The Cyries Energy Inc. common shares have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Certain information included in this press release is forward-looking. Forward-looking statements regarding possible events, conditions or results are based on assumptions about future economic conditions and courses of action and include future orientated financial information with respect to prospective results of operations, financial position and cash flows of Cyries. Forward-looking statements may include, without limitation, statements relating to the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Cyries and potential acquisitions. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues", or similar words.

Although Cyries believes the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Cyries' annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Cyries' actual performance and financial results in future periods to differ materially from any conclusion, forecast, projection of future performance or results of operations expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and Cyries does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

Contact Information

  • Cyries Energy Inc.
    Donald F. Archibald
    Chairman & C.E.O.
    (403) 262-9609
    (403) 262-0055 (FAX)