Great Plains Exploration Inc.
TSX : GPX

Great Plains Exploration Inc.

October 27, 2006 07:46 ET

Great Plains Announces $8.0 Million Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - Oct. 27, 2006) -

This news release is not for dissemination in the United States or to any United States news services.

Great Plains Exploration Inc. (TSX:GPX) is pleased to announce that it has entered into an agreement with GMP Securities L.P., on behalf of a syndicate of underwriters, including Dundee Securities Corporation and Acumen Capital Finance Partners Limited, to raise approximately $8.0 million on a bought deal basis consisting of the private placement of 3,750,000 flow through common shares at $2.15 per share.

Closing of the transaction is expected to occur on or about November 15, 2006, and is subject to normal regulatory approvals.

Great Plains intends to use the proceeds from the financing to partially fund its capital expenditure program in 2007, which includes the winter drilling of 8 to 12 light oil locations at the Company's operated property at Randell.

The common shares of Great Plains have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: operations plans and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President and CEO
    (403) 262-9620
    (403) 262-9622 (FAX)
    or
    Great Plains Exploration Inc.
    Thomas K. Rouse
    VP Finance and CFO
    (403) 262-9620
    (403) 262-9622 (FAX)
    Email: info@greatplainsexp.com
    Website: www.greatplainsexp.com