Greentree Gas & Oil Ltd.

Greentree Gas & Oil Ltd.

June 25, 2008 18:23 ET

Greentree Gas & Oil Ltd. Announces a Proposed Non-Brokered Private Placement

LONDON, ONTARIO--(Marketwire - June 25, 2008) - Greentree Gas & Oil Ltd. (TSX VENTURE:GGO) ("Greentree") is pleased to announce a proposed non-brokered private placement of up to 4,848,485 flow-through shares at a price of $0.165 per flow-through share (the "Flow-Through Shares, and 1,562,500 units priced at $0.16 per unit (the "Units") (collectively, the "Offering"), for aggregate gross proceeds of $1,050,000. Each Unit will consist of one Greentree common share and one-half (1/2) of a share purchase warrant (the "Warrants"). Each whole Warrant entitles the holder to purchase one Greentree common share at a price of $0.20 per common share for a period of two years from closing.

All securities to be issued pursuant to the private placement will be subject to a four (4) month hold period.

Greentree will pay finders fees of up to 10% on the gross proceeds of the Offering and brokers warrants of up to 10% of the number of Flow-Through Shares and Units sold pursuant to the Offering (each broker warrant entitling the holder to purchase one common share at a price of $0.16 within two years after the closing)

The net proceeds to Greentree from the Offering will be used to finance exploration and development of oil and gas properties for expenses qualifying as Canadian exploration expenses ("CEE") under the Income Tax Act (Canada) and Canadian development expenses which qualify as CEE, and to finance the evaluation of additional shallow oil properties, to rework and re-stimulate existing producing wells, to enhance production and to reduce outstanding debt.

Completion of the Offering is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX Venture Exchange.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The flow-through common shares, the common shares and the warrants underlying the Units will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

Greentree also announces the grant of stock options to the following officers and directors: Duncan Hamilton, Gary Bean, Robert Down, Patrick O'Meara and Donald Sheldon. Each was granted options to purchase 200,000 common shares exercisable at $0.14 per share at any time on or before June 24, 2013.

Greentree Gas & Oil Ltd. is based in London, Ontario and is an explorer and producer of oil and natural gas in southwestern Ontario. Greentree currently has 47,531,728 common shares outstanding.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Greentree Gas & Oil Ltd.
    Mr. Duncan Hamilton
    (519) 681-9355