E4 Energy Inc.
TSX VENTURE : EFE

E4 Energy Inc.

November 09, 2006 23:59 ET

E4 Energy Announces Bought Deal Flow Through Equity Financing

CALGARY--(CCNMatthews - Nov. 9) -

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

E4 Energy Inc. ("E4" or the "Company") (TSX VENTURE:EFE) is pleased to announce today that it has entered into an agreement to issue, on a "bought deal" private placement basis, 3,889,000 flow through shares of E4 at $1.80 per share for gross proceeds of $7,000,200.

The shares will be issued through a syndicate of underwriters led by Canaccord Capital Corporation and including Dundee Securities Corp., Tristone Capital Inc., and Blackmont Capital Inc. Closing of this private placement is scheduled for on or about November 30, 2006 and is subject to applicable regulatory and stock exchange approvals.

E4 has developed a significant number of exploration and development drilling opportunities on the Company's existing land base. In N.E. British Columbia, E4 has licensed 4 high impact exploration well locations in 4 separate areas ready to be drilled. All 4 areas have contingent follow up drilling locations. In the Company's other core area of East Central Alberta, E4 presently has more than 15 well locations licensed and drill ready, and continues to add additional locations to its growing drilling inventory. With the use of the net financing proceeds E4 will be able to accelerate the Company's drilling program for both the remaining Q4 2006, and the 2007 budget year.

E4 is presently producing over 1000 boe/d and has approximately 200 boe/d behind pipe awaiting tie-in. To date in Q4, the Company has drilled and cased 2 wells (2.0 net) and expects to drill an additional 3 to 5 wells before year-end.

E4 remains on track to meet the Company's previously announced expected exit rate of 1,200 boe/d.

E4 Energy Inc. is a junior oil and gas company engaged in the exploration for, and development and production of natural gas and crude oil reserves primarily in the provinces of British Columbia and Alberta. E4's common shares trade on the TSX Venture Exchange under the symbol "EFE".

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act.

ADVISORY

This press release may contain forward-looking statements including management's assessment of future plans and operations, expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), acquisitions, commodity price and exchange rate fluctuation and uncertainties resulting from competition from other producers and ability to access sufficient capital from internal and external sources. Additional information on these and other factors that could affect E4's operations and/or financial results are included in E4's reports on file with Canadian securities regulatory authorities.

Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boepd means barrel of oil per day. In this press release: (i) mmboe means million boe; (ii) boe/d or boepd means boe per day; (iii) bbls/d means barrels per day; (iv) mcf means thousand cubic feet; (v) mmcf means million cubic feet; (vi) mcf/d or mcfd means thousand cubic feet per day; and (vii) mmdf/d or mmcfd means million cubic feet per day.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • E4 Energy Inc.
    Paul Starnino
    President and Chief Executive Officer
    (403) 266-6747
    or
    Franco Civitarese
    Vice President Finance and Chief Financial Officer
    (403) 266-6747