Duvernay Oil Corp.
TSX : DDV

Duvernay Oil Corp.

June 07, 2005 08:17 ET

Duvernay Oil Corp. Enters Into $50.0 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - June 7, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

Duvernay Oil Corp.(TSX:DDV) is pleased to announce that it has entered into a bought deal financing with a syndicate of underwriters led by Peters & Co. Limited and including FirstEnergy Capital Corp., Scotia Capital Inc., BMO Nesbitt Burns Inc., First Associates Investments Inc., Raymond James Ltd. and Sprott Securities Inc. for an offering of 1,800,000 common shares at a price of $27.75 per share for gross proceeds of $49.95 million. Completion of the financing is subject to all normal regulatory approvals. The common shares will be offered in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec by way of short form prospectus. The financing is expected to close on or about June 28, 2005.

The net proceeds of the offering will be used to fund Duvernay's increased capital expenditure program in 2005 and for general corporate purposes. Duvernay has expanded its 2005 capital program from $180 million to $230 million.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The common shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

This press release contains certain forward-looking statements. These statements are based on Duvernay's current expectations and assumptions that could prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of risks, uncertainties and other factors, such as: changes in the general economic, market, regulatory, industry and business conditions; fluctuations in commodity prices and currency exchange rates; the successful and timely implementation of growth projects; imprecision of reserve estimates; environmental risks; competition from other industry participants; availability of capital; and uncertainties resulting from potential delays or changes in plans, among others. See Duvernay's Annual Information Form and other documents Duvernay files with Canadian securities regulatory authorities for further details, copies of which are available from Duvernay directly or on its website, http://www.duvernayoil.com or on the SEDAR website http://www.SEDAR.com.

Contact Information

  • Duvernay Oil Corp.
    Michael Rose
    President and C.E.O.
    (403) 571-3600
    or
    Duvernay Oil Corp.
    Brian Robinson
    Vice-President, Finance and C.F.O.
    (403) 571-3609
    or
    Duvernay Oil Corp.
    Scott Kirker
    Manager - Corporate Affairs
    (403) 571-3683
    Website: http://www.duvernayoil.com