Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

May 02, 2007 16:05 ET

Grey Wolf Exploration Inc. Announces $10 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - May 2, 2007) -


Grey Wolf Exploration Inc. ("Grey Wolf") (TSX:GWE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by CIBC World Markets Inc., under which they have agreed to purchase on a bought deal basis pursuant to a short form prospectus 3,100,000 common shares ("Common Shares") at a price of $3.25 per Common Share, for gross proceeds to Grey Wolf of $10,075,000 (the "Offering").

Grey Wolf has also granted the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 465,000 Common Shares for additional gross proceeds of approximately $1.5 million.

Net proceeds of this Offering will be used to expand Grey Wolf's 2007 capital expenditure program, and provides for the drilling of as many as 4 net additional wells in the Pouce Coupe/Valhalla area. The accelerated development program is also expected to result in improved cost of infrastructure and better operating efficiencies. Grey Wolf's revised capital program for 2007 is now $35 million, up from the previously announced $25 million.

Closing is expected to occur on or about May 28, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approval, including the approval of the Toronto Stock Exchange.

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated closing date of the Offering and the anticipated use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Closing could be delayed if Grey Wolf cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Grey Wolf is an Alberta-based oil and natural gas company involved in the development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Its common shares trade on the Toronto Stock Exchange under the symbol "GWE".

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