Exall Energy Corporation

Exall Energy Corporation

April 04, 2007 18:07 ET

Exall Energy Announces First Ten Days of Trading and Conversion Price for Convertible Debenture Financing

TORONTO, ONTARIO--(CCNMatthews - April 4, 2007) - Exall Energy Corporation (the "Corporation") (TSX:EE) is pleased to announce that it is exercising its rights under the terms of its 5% convertible debentures (the "Debentures") to force conversion (the "Conversion") of the Debentures at the weighted average trading price of the common shares of the Corporation (the "Common Shares") on the Toronto Stock Exchange ("TSX") for the ten trading day period ending April 4, 2007, being $0.47 (the "Conversion Price"). The Debentures were originally issued on March 19, 2007 (the "Debenture Financing").

The Debentures will be converted into units (each a "Unit"), each Unit being comprised of one (1) Common Share in the capital of the Corporation and one-half (1/2) of a Common Share purchase warrant. Each whole Common Share purchase warrant ("Warrant") entitles the holder to acquire a further Common Share of the Corporation until April 5, 2008 at an exercise price equal to $0.58. A total of 3,460,638 Common Shares and 1,730,319 Warrants will be issued on Conversion. The Common Shares and Warrants issued upon Conversion will be subject to the remainder of the four-month hold period which began on the date of issuance of the Debentures, March 19, 2007.

Pursuant to the agency agreement with D&D Securities Company and Canaccord Capital Corporation (collectively, the "Agents") entered into in connection with the Debenture Financing, the Agents will now receive 278,829 brokers' warrants (the "Broker Warrants"). The Broker Warrants are exercisable until April 5, 2008 to acquire Units.

The Corporation is a junior oil and gas company that was created to facilitate a plan of arrangement (the "Arrangement") by which Exall Resources Limited (now Gold Eagle Mines Ltd.), a TSX listed company, reorganized its business and transferred its oil and gas assets to the Corporation. The Corporation is active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia, Texas and in the North Sea offshore the United Kingdom.

Contact Information

  • Exall Energy Corporation
    Stephen G. Roman
    Executive Chairman
    (416) 368-3949
    (416) 368-5146 (FAX)
    Exall Energy Corporation
    Frank S. Rebeyka
    President and CEO
    (403) 237-7820
    (403) 262-4723 (FAX)
    Website: www.exall.com