FIRSTLAND Energy Limited
TSX VENTURE : FLD

FIRSTLAND Energy Limited

March 11, 2009 16:36 ET

Firstland Energy to Raise $2,000,000 in Private Placement Financing Resulting in Change of Control

CALGARY, ALBERTA--(Marketwire - March 11, 2009) - Firstland Energy Limited ("Firstland" or the "Corporation") (TSX VENTURE:FLD) announces that it approved a private placement of 8,000,000 common shares in the capital of Firstland (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 one other individual that will result in a change of control of the Corporation. The participation of Laurie Smith under the Private Placement constitutes a "related party transaction".

The completion of the Private Placement is subject to receipt of approval from the TSX Venture Exchange and shareholder approval. Shareholders will be asked to approve the Private Placement at Firstland's annual general and special meeting of shareholders scheduled to be held on June 11, 2009. If approved by shareholders, closing of the Private Placement will occur immediately after the shareholders meeting.

Completion of the Private Placement is subject to a number of other conditions including the execution of Support Agreements by all of the directors and a principal shareholder of the Corporation pursuant to which they will agree to vote all of the common shares of Firstland held by them in favour of the Private Placement. The board of directors of Firstland have unanimously (subject to the abstention of interested directors) approved the Private Placement and intend to execute Support Agreements.

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.

About Firstland

Firstland is a junior oil and natural gas exploration and production company with a substantial land base in Alberta. Firstland's management will continue to evaluate drilling and acquisition opportunities within Canada. The common shares of Firstland are listed on the TSX Venture Exchange under the trading symbol "FLD". There are currently 12,950,000 common shares of Firstland 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. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to obtain TSX Venture Exchange approval and shareholder approval of the Private Placement. 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 in the disclosed time frames or at all. 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

  • Firstland Energy Limited
    Dave van der Lee
    President, CEO & CFO
    (403) 264-9223
    or
    Firstland Energy Limited
    800, 839 - 5th Avenue S.W.
    Calgary, Alberta T2P 3C8
    Email: corp@firstlandenergy.com