Highpine Oil & Gas Limited
TSX : HPX

Highpine Oil & Gas Limited

February 02, 2006 16:44 ET

Highpine Oil & Gas Limited Announces $100.6 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Feb. 2, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Highpine Oil & Gas Limited (TSX:HPX) ("Highpine") announces that it has entered into an agreement to sell to a syndicate of underwriters led by RBC Capital Markets and including FirstEnergy Capital Corp, GMP Securities LP, Tristone Capital Inc., BMO Nesbitt Burns Inc., and Wellington West Capital Markets Inc. (collectively, the "Underwriters"), 4,300,000 class A common shares at a price of $23.40 per common share to raise aggregate gross proceeds of $100,620,000 on a bought deal basis. Closing is expected to occur on or about February 23, 2006.

The net proceeds from the financing will be used to fund Highpine's 2006 capital expenditure program and for general corporate purposes. Highpine's 2006 capital expenditure program is anticipated to be approximately $140 million, and will increase to approximately $160 million assuming Highpine acquires White Fire Energy Ltd., which program will primarily fund its Pembina and West Central Gas Fairway exploration and production programs as well as the ongoing evaluation of high impact prospects at Crystal, Medicine Lodge and Ferrier.

Highpine is a Calgary-based oil and natural gas company engaged in exploration for and the acquisition, development and production of natural gas and crude oil in western Canada. Highpine's current exploration and development efforts are focused in the West Pembina and Windfall/Chip Lake/Joffre areas of Central Alberta. The Company's class A common shares trade on the Toronto Stock Exchange under the symbol "HPX".



Highpine Oil & Gas Limited
Suite 4000, 150 - 6th Avenue S.W.
Calgary, Alberta T2P 3Y7
Canada


This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The class A common shares offered will not be and have not been registered under the United States Securities Act of 1933 (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

This press release contains certain forward-looking statements, including expectations of future operating and financial results. These statements are based on Highpine's current expectations and assumptions that could prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of risks, uncertainties and other factors, such as: changes in the general economic, market, regulatory, industry and business conditions; fluctuations in commodity prices and currency exchange rates; the successful and timely implementation of growth projects; imprecision of reserve estimates; environmental risks; competition from other industry participants; availability of capital; and uncertainties resulting from potential delays or changes in plans, among others. See Highpine's 2004 annual information form and other documents Highpine files with Canadian securities regulatory authorities for further details, copies of which are available from Highpine directly or on its website; www.highpineog.com or on the SEDAR website www.sedar.com.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Highpine Oil & Gas Limited
    A. Gordon Stollery
    Chairman, President and Chief Executive Officer
    (403) 265-3333
    (403) 265-3362 (FAX)
    or
    Highpine Oil & Gas Limited
    Greg N. Baum
    Executive Vice President and Chief Operating Officer
    (403) 265-3333
    (403) 265-3362 (FAX)
    or
    Highpine Oil & Gas Limited
    Harry D. Cupric
    Vice President, Finance and Chief Financial Officer
    (403) 265-3333
    (403) 265-3362 (FAX)
    www.highpineog.com