Duvernay Oil Corp.
TSX : DDV

Duvernay Oil Corp.

September 18, 2007 08:16 ET

Duvernay Oil Corp. Enters Into Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Sept. 18, 2007) -

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 private placement flow-through common share financing agreement, on a bought deal basis, with a syndicate of underwriters led by Peters & Co. Limited and including FirstEnergy Capital Corp., Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Canaccord Capital Corporation, Cormark Securities Inc., and Raymond James Ltd. Duvernay will issue 1,000,000 flow-through common shares at a price of $43.10 per share, for total gross proceeds of $43,100,000. Officers, directors and employees of Duvernay are participating for up to 5% of the offering. Duvernay will use the proceeds of the offering to incur Canadian Exploration Expenses to accelerate follow-up on recent EP successes involving the Triassic Montney and Doig gas objectives in northeast B.C., the deeper Paleozoic gas objectives at Sunset-Groundbirch B.C., significant new farm-in opportunities in the Alberta Deep Basin, and Devonian oil opportunities in Alberta. These qualifying expenditures will be renounced to subscribers for the 2007 tax year. The offering is subject to customary regulatory approvals and is expected to close on or about October 4, 2007.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered 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.

This press release contains certain forward-looking statements, including expectations of the anticipated use of proceeds and closing of the offering. 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; www.duvernayoil.com or on the SEDAR website 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