Pathway Oil & Gas 2008 Flow-Through Limited Partnership

Pathway Asset Management

Pathway Asset Management

July 07, 2008 11:59 ET

Initial Public Offering (Oil & Gas Flow-Through) Raised $5,510,390

TORONTO, ONTARIO--(Marketwire - July 7, 2008) - Pathway Oil & Gas 2008 Flow-Through Limited Partnership (the "Partnership" or "Pathway Oil & Gas") reports that it has completed a first closing of its Initial Public Offering (the "Offering") and raised total gross proceeds of $5,510,390 on the sale of an aggregate of 551,039 limited partnership units at $10.00 per unit pursuant to a Final Prospectus dated June 18, 2008, which is available on SEDAR at www.sedar.com. Wellington West Capital Inc., HSBC Securities (Canada) Inc., Burgeonvest Securities Limited, Canaccord Capital Corporation, Raymond James Ltd., Research Capital Corporation, Integral Wealth Securities Limited and Argosy Securities Inc. acted as agents in the Offering, with Wellington West acting as the lead agent. Following completion of the Offering, Pathway Oil & Gas 2008 Inc., the General Partner of the Partnership, will invest available funds of the Partnership primarily in flow-through shares of resource companies engaged in oil and gas exploration, development and/or production in Canada and listed on the TSX or the TSX Venture Exchange. The General Partner will invest the available funds such that Limited Partners will be entitled to claim certain deductions from income and investment tax credits for income tax purposes for the 2008 taxation year. The General Partner also plans to invest the available funds with a view to achieving capital appreciation of the Partnership's investments.

The General Partner retained Pathway Investment Counsel Inc. (the "Portfolio Manager") to provide investment advisory services to the Partnership as Portfolio Manager. The Portfolio Manager has retained Brickburn Asset Management Inc. to act as investment subadvisor to the Portfolio Manager and to manage the Partnership's investment portfolio in accordance with the Investment Guidelines and Restrictions. Horst Mueller of Mueller Behavioural Analytics will provide technical analysis in relation to the oil and gas sector to the Portfolio Manager.

The second closing for Pathway Oil & Gas is expected in late July 2008.

Pathway Asset Management's last eight prospectus offerings - Pathway Mining 2006 Flow-Through Limited Partnership, Pathway Mining 2006-II Flow-Through Limited Partnership, Pathway Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2007-II Flow-Through Limited Partnership, Pathway Mining 2007-III Flow-Through Limited Partnership, Pathway Quebec Mining 2007 Flow-Through Limited Partnership, Pathway Mining 2008 Flow-Through Limited Partnership and Pathway Quebec Mining 2008 Flow-Through Limited Partnership - all sold out and were oversubscribed.

Pathway Group's first offering - Pathway Mining 2005 Flow-Through Limited Partnership - which closed in late 2005, was dissolved 20 months ahead of schedule, on May 8, 2006, and rolled over into an RRSP-eligible mutual fund corporation (MineralFields/EnergyFields Multi Series Fund Inc.) to provide investors with early liquidity on a tax-deferred basis. At early dissolution, each $10 unit was worth $19.90, representing a pre-tax return of 99 %, and an after-tax return of 325.98 % before factoring in capital gains tax, and 227.13 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). Pathway Group's second offering - Pathway Mining 2006 Flow-Through Limited Partnership - was also dissolved and rolled over 16 months ahead of schedule @ $11.19 per $10.00 unit, with an after-tax return of 140.99 % before factoring in capital gains tax, and 85.00 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). Pathway Group's third offering - Pathway Mining 2006-II Flow-Through Limited Partnership - was also dissolved and rolled over 7 1/2 months ahead of schedule @ $10.09 per $10.00 unit, with an after-tax return of 116.61 % before factoring in capital gains tax, and 66.35 % when capital gains tax is factored in (the after-tax returns are calculated in accordance with certain assumptions disclosed in the prospectus). In other words, Pathway Asset Management has dissolved and rolled over each of its first 3 prospectus offerings way ahead of schedule, and above par.

Pathway Asset Management has also recently filed a preliminary prospectus for Pathway Mining 2008-II Flow-Through Limited Partnership.

Information on the Partnership can be obtained by visiting the website www.pathwayam.com or by contacting the General Partner by e-mail at jd@mineralfields.com, by telephone at (416) 665-9339 ext 221, toll-free at 1 (800) 339-9169 ext 221, or by facsimile at (416) 665-9331.

Contact Information

  • Pathway Asset Management
    Imtiaz Hashmani
    CFO
    (416) 665-9339 x 229 or Toll Free 1-800-339-9169 x 229
    (416) 665-4772 (FAX)
    Website: www.pathwayam.com