Cyries Energy Inc.
TSX : CYS

Cyries Energy Inc.

August 11, 2005 15:59 ET

Cyries Energy Inc. Announces Closing of $50 Million Bought-Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 11, 2005) -

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

Cyries Energy Inc. ("Cyries") (CYS - TSX) is pleased to announce it has closed the previously announced $50 million bought deal financing with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Peters & Co. Limited, GMP Securities Ltd., Raymond James Ltd., Tristone Capital Inc. and Clarus Securities Inc. whereby 803,300 units were issued on a private placement basis at a price of $62.25 per unit for gross proceeds of $50,005,425. Each unit is comprised of two (2) common shares of Cyries (at a price of $12.45 per common share) and three (3) subscription receipts of Cyries (at a price of $12.45 per subscription receipt).

Proceeds from the sale of the common shares will be used to fund Cyries' increased capital expenditure program and for general corporate purposes. Proceeds form the sale of the subscription receipts will be held in escrow. If Cyries' proposed acquisition of a wholly-owned subsidiary of a private oil and gas company closes on or before August 31, 2005, the net proceeds of the offering of subscription receipts will be released to Cyries to finance a portion of the acquisition and one common share will be issued for each one subscription receipt held without payment of additional consideration. However, if the acquisition fails to close by August 31, 2005, the escrow agent will return to the holders of subscription receipts the issue price of each subscription receipt and such holder's pro-rata entitlement to interest earned thereon.

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 exemption from registration.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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