Traverse Energy Ltd.
TSX VENTURE : FLD

June 11, 2009 17:40 ET

Firstland Energy Closes Private Placement Financing Resulting in Change of Control and Effects Name Change

CALGARY, ALBERTA--(Marketwire - June 11, 2009) - Traverse Energy Ltd. (formerly Firstland Energy Limited) (the "Corporation") (TSX VENTURE:FLD) announces that it received shareholder approval for and closed its previously announced non-brokered private placement of 8,000,000 common shares ("Common Shares") in the capital of the Corporation (the "Private Placement") at a subscription price of $0.25 per share for total proceeds of $2,000,000 to Laurie Smith, a director of the Corporation, and his business associate, David Erickson, and their immediate family members.

Pursuant to the Private Placement, Laurie Smith together with his immediate family members acquired 5,000,000 Common Shares. Upon completion of the Private Placement, Laurie Smith owns or controls, directly or indirectly, 5,215,000 Common Shares, representing approximately 24.9% of the total issued and outstanding Common Shares. The Common Shares were acquired by Laurie Smith to effect a change of control of the Corporation. David Erickson and his immediate family members acquired 3,000,000 Common Shares. Upon completion of the Private Placement, David Erickson owns or controls, directly or indirectly, 3,006,000 Common Shares, representing approximately 14.3% of the issued and outstanding Common Shares. The purchase of the Common Shares of the Corporation by Mr. Erickson and his immediate family members was also made to effect a change of control of the Corporation. Mr. Smith and/or Mr. Erickson may increase or decrease their investment in the Corporation depending on market conditions or any other relevant factors.

The completion of the Private Placement is subject to final TSX Venture Exchange approval. The hold period on the Common Shares issued pursuant to the Private Placement expires on October 12, 2009. The proceeds of the Private Placement will be used to fund oil and gas exploration, production and development expenditures and for working capital and general corporate purposes.

Pursuant to shareholder approval, the Corporation also amended its articles to effect a name change of the Corporation from "Firstland Energy Limited" to "Traverse Energy Ltd." on June 11, 2009.

In addition, Mr. Dave van der Lee tendered his resignation effective June 11, 2009 as President, Chief Executive Officer and Chief Financial Officer of the Corporation. He will be replaced by Laurie Smith as President and Chief Executive Officer. Mr. van der Lee will continue to serve as a director of the Corporation. The other officers of the Corporation appointed following closing of the Private Placement are:



David Erickson - Vice President and Chief Operating Officer
Sharon Supple - Chief Financial Officer
Dan Kolibar - Corporate Secretary


Robert Lehodey also tendered his resignation as a director effective June 11, 2009 and David Erickson and Dan Kolibar were appointed as directors. The directors of the Corporation are:



Laurie Smith
Dave van der Lee
Robert Libin
Adam Wells
David Erickson
Dan Kolibar


About the Corporation

The Corporation is a junior oil and natural gas exploration and production company with a substantial land base in Alberta. The Corporation's management will continue to evaluate drilling and acquisition opportunities within Canada. The common shares of the Corporation currently are listed on the TSX Venture Exchange under the trading symbol "FLD", however upon TSX Venture Exchange approval the Corporation intends to change its trading symbol to "TVL" in the near term. Upon the completion of the Private Placement, there are currently 20,950,000 common shares of the Corporation issued and outstanding.

Forward-Looking Information

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the Corporation's completion of the Private Placement and the use of proceeds from the Private Placement. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to obtain final approval from the TSX Venture Exchange. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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

Contact Information

  • Traverse Energy Ltd.
    Laurie Smith
    President and Chief Executive Officer
    (403) 264-9223
    or
    Traverse Energy Ltd.
    800, 839 - 5th Avenue S.W.
    Calgary, Alberta T2P 3C8