Galleon Energy Inc.

Galleon Energy Inc.

October 07, 2011 12:45 ET

Galleon Energy Inc. Announces Amendment to Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2011) - Galleon Energy Inc. (TSX:GO) ("Galleon" or the "Corporation") announces that the Toronto Stock Exchange ("TSX") has accepted Galleon's Notice of Intention to amend its normal course issuer bid currently in place (the "Amended Bid"). Under the Amended Bid, Galleon may purchase for cancellation, from time to time, as Galleon considers advisable, up to a maximum of 6,200,000 Class A shares ("Class A Shares") of the Corporation, increased from the limit of 2,000,000 Class A Shares under the terms of the normal course issuer bid formerly in place (the "Original Bid"). Under the Original Bid, Galleon purchased a total of 605,100 Class A Shares for cancellation at an average price of $2.35 per Class A Share. Purchases of Class A Shares will be made on the open market through the facilities of the TSX. The price which Galleon will pay for any Class A Shares purchased by it will be the prevailing market price of the Class A Shares on the TSX at the time of such purchase. The actual number of Class A Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Galleon, subject to a maximum daily purchase limitation of 132,981 Class A Shares which equates to 25% of Galleon's average daily trading volume for the six months prior to October 31, 2010. The average daily trading volume for the six months prior to October 31, 2010 was 531,927.

The Amended Bid will begin effective as of October 12, 2011 and will terminate on November 30, 2011 or such earlier time as the Bid is completed or terminated at the option of Galleon. FirstEnergy Capital Corp. will continue to act on the Corporation's behalf to make purchases of Class A Shares pursuant to the Amended Bid.

Management of Galleon believes that, from time to time, the market price of its Class A Shares may not fully reflect the underlying value of the Class A Shares and that at such times the purchase of Class A Shares would be in the best interests of Galleon. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders.

Galleon has approximately 86.1 million Class A Shares issued and outstanding which trades on the TSX under the symbol "GO".

Contact Information

  • Galleon Energy Inc.
    William E. Andrew
    Executive Chairman
    (403) 261-6012

    Galleon Energy Inc.
    Shivon Crabtree
    Vice President and Chief Financial Officer
    (403) 261-6012