Huntington Exploration Inc.
TSX VENTURE : HEI

Huntington Exploration Inc.

October 25, 2010 09:01 ET

Huntington Exploration Inc. Announces Completion of Private Placement and Corporate Reorganization

CALGARY, ALBERTA--(Marketwire - Oct. 25, 2010) - C. Alan Smith, Chief Executive Officer of Huntington Exploration Inc. ("HEI" or the "Company") (TSX VENTURE:HEI) announced today that HEI has completed a non-brokered private placement of units for aggregate gross proceeds of $2,500,000, subject to TSX Venture Exchange final approval. The Company issued a total of 50,000,000 units at a price of $0.05 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable into one additional common share at an exercise price of $0.10 per share for a period of 24 months after the closing. The securities issued in connection with the private placement will be subject to a four month hold period that expires on February 23, 2011. The proceeds of the private placement, after repayment of debt in the aggregate amount of $918,638, will be used for general corporate and working capital purposes.

The Company also announces that it has completed a reorganization pursuant to which William Smith, Vanessa Smith and Andrew Burgess have resigned as directors of the Company and were replaced by Steve Harding, Michael Binnion and Roger McMechan. Andrew Burgess has also resigned as Vice President and Chief Financial Officer and William Smith has resigned as Secretary. The Company wishes to thank each of William Smith, Vanessa Smith and Andrew Burgess for their dedication and service to HEI.

The New Board of HEI includes the following individuals:

Steve Harding – Mr. Harding is President, CEO and Director of Contact Exploration Inc. With 28 years of oil and gas experience, Steve Harding has occupied various senior positions within EnCana Corporation, its predecessor Alberta Energy and Husky Oil and Gas Ltd. (now Husky Energy). His experience includes Vice President Northern Canada and Vice President Alaska/Mackenzie Delta at EnCana and Chief Geoscientist at Husky. Mr. Harding has extensive experience with oil and gas exploration and development within numerous geological basins, both within and outside of North America. Included in his accomplishments is developing the geological model which led to the discovery of the giant White Rose field, offshore Newfoundland. While at EnCana, Mr. Harding was responsible for negotiating and securing the largest exploration position in the US and Canadian Arctic, leading to the discovery of the Umiak field and receiving an MMS corporate citizen award for outstanding cultural and environmental efforts in Alaska.

Mr. Harding's Bachelor of Science degree in Geology (Hons) is from McMaster University in Hamilton, Ontario and he earned his Master's degree in Geology at the University of Alberta in Edmonton. He is a professional Geologist with the Association of Professional Engineers, Geologists and Geophysicists of Alberta.

Michael Binnion – Mr. Binnion is one of the founding shareholders and has been the Chief Executive Officer and President of Questerre Energy Corp., a public, oil and gas exploration and production company, since November 2000.

Mr. Binnion has been actively involved in the financing and executive management of numerous private and public companies over the last 16 years through his investment company, Rupert's Crossing Inc. Mr. Binnion served as the President and a Director of Terrenex and its predecessor from October 1995 to April 2008. He served as President and Chief Executive Officer of Flowing Energy Corp., a junior exploration and production company, from June 1996 to December 2001 and served as Chairman of the Board from 2002 to 2004. He served as the President and Chief Financial Officer of CanArgo Energy Corporation, an independent exploration & production company from 1997 to 2000. From 1992 to 1997 he was Executive Director of Crossfield House Inc., a private merchant banking firm. Prior experience includes financial leadership and directorship roles within various public and private companies. Mr. Binnion currently serves as an Independent Director of High Arctic Energy Services Trust.

Mr. Binnion is a Chartered Accountant and holds a Bachelor's degree in Commerce from the University of Alberta.

Roger McMechan – Mr. McMechan is the Executive Vice-President and a director of Winstar Resources Ltd, an international E&P company focused on Tunisia and Eastern Europe. Mr. McMechan has 27 years of experience in the oil and gas industry. He began working for Petro-Canada as a Drilling, Completions and Production Engineer. During his time at Petro-Canada, Mr. McMechan also served as the company's Completions Engineering Specialist and spent five years living overseas serving as Operations Manager in Algeria and General Manager for North Africa. From 2000 to 2003, Mr. McMechan was Asset Team Leader of West Central Alberta. In 2003, Mr. McMechan joined Burlington Resources Canada as Manager/General Manager, Exploration and Development for the Northern Plains and West Central Alberta teams. He has been with Winstar in his current position since April, 2005.

Mr. McMechan received his Bachelor of Science degree in Mechanical Engineering from the University of Waterloo in Guelph, Ontario. 

Steve Harding, Michael Binnion and Roger McMechan, directors of the Company, (directly or indirectly) subscribed for 2,000,000 units, 2,000,000 units and 200,000 units respectively, under the private placement. The Company is relying on exemptions under TSX Venture Policy 5.9 and Multilateral Instrument 61-101 for the issuance of the units, (Formal Valuation - Issuer Not Listed on Specified Markets; Minority Approval - Fair Market Value Not More Than 25% of Market Capitalization).

Finders acting in connection with the private placement received aggregate fees of $64,850, 1,865,610 common shares and 5,033,970 finder's warrants, with each finder's warrant entitling the holder to purchase one common share at an exercise price of $0.10 per share for a period of 24 months after the closing. 

After giving effect to the private placement, the Company has 80,154,967 common shares issued and outstanding.

HEI is an exploration-focused company actively pursuing opportunities in the petroleum and natural gas business in Western Canada sedimentary basin.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the company's disclosure documents on the SEDAR website at www.sedar.com. The company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Huntington Exploration Inc.
    C. Alan Smith
    Chief Executive Officer
    (403) 237-7766
    asmith@aeonian.com