Duvernay Oil Corp.
TSX : DDV

Duvernay Oil Corp.

September 29, 2005 08:29 ET

Duvernay Oil Corp. Expands 2005 Capital Program and Enters into Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 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 the expansion of its 2005 Capital Program from its previously announced guidance of $230 million to $310 million. The expansion results from the continued success of the EP program, which has yielded numerous new projects and opportunities. Duvernay is expanding and accelerating the Cadomin gas development at Brassey B.C., the Sundown Doig development in B.C., the Cecilia plant expansion in the Alberta Deep Basin, and the New Pool Wildcat program throughout the Company's operating areas.

In conjunction with the capital budget increase, Duvernay 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., BMO Nesbitt Burns Inc., Blackmont Capital Inc., Raymond James Ltd. and Sprott Securities Inc. Duvernay will issue 800,000 Flow-through common shares at a price of $52.00, for total gross proceeds of $41,600,000. Officers, directors and employees of Duvernay are participating for up to 15% of the offering. Duvernay will use the proceeds of the offering to incur Canadian Exploration Expenses on the continued exploration of its oil and natural gas properties and will renounce such qualifying expenditures to subscribers for the 2005 tax year.

The offering is subject to customary regulatory approvals and is expected to close on or before October 18, 2005.

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 future production, operating and financial results. 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 recent prospectus 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
    Website: www.duvernayoil.com