Enterprise Energy Resources Ltd.

Enterprise Energy Resources Ltd.

June 20, 2011 13:02 ET

Enterprise Announces Terms of Financing and Execution of the Cerda Williston Basin Acreage Acquisition Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 20, 2011) -


Enterprise Energy Resources Ltd. (the "Company") (TSX VENTURE:EER) is pleased to announce that it has arranged a non-brokered private placement of up to 20 million units of the Company (the "Units") at a price of $0.60 per Unit for gross proceeds of up to $12 million (the "Financing"). Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share at a price of $0.80 for a period of six months from closing and thereafter at a price of $1.00 for an additional six months.

Closing of the Financing is anticipated to occur on or before June 24th, 2011 and is subject to regulatory approval. Securities issued under the Financing will be subject to a four month hold period beginning upon their issuance. The Financing replaces the previously announced brokered financing of subscription receipts.

The Company also announces that it has entered into a definitive agreement (the "Cerda Agreement") and agreed to amended terms in respect of its previously announced transaction to acquire all of the shares of Cerda Capital Corporation ("Cerda") from EVO Energy Ltd. ("EVO"). The number of common shares of the Company to be proportionately issued to the shareholders of EVO will increase to an aggregate of 8,333,333 shares, with all other terms of the acquisition to remain as previously announced. The proceeds of the Financing will be used to fund the acquisition of the shares of Cerda (the "Cerda Acquisition"), for ongoing capital expenditures across the Company's core asset base in the Williston Basin of Montana and North Dakota and for general corporate purposes.

Closing of the Cerda Acquisition will be subject to a number of conditions, including but not limited to: (a) completion of due diligence; (b) the approval of the TSXV; and (c) the completion of the Financing. The Company anticipates the Cerda Acquisition will close on or about June 28th, 2011.

Update on Williston Basin Leasing Program

The Company previously announced that it had entered into a letter agreement to acquire from Unconventional Energy Partners L.P. all of the shares of Basin Petroleum Ltd. ("Basin"). The closing of the acquisition of the shares of Basin is subject to a number of conditions, including the entering into of a definitive agreement and the completion of due diligence, which is ongoing.


Geoff Carrington, President & CEO

This press release does not constitute an offer to purchase securities. The securities to be offered in the offering have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements". Such forward-looking statements, including but not limited to those with respect to the closing of the Financing, the closing of the Cerda Acquisition, the closing of the acquisition of shares of Basin, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, Cerda Capital Corporation or Basin Petroleum Limited to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Shares Outstanding: 21,706,782

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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