Innova Exploration Ltd.
TSX : IXL

Innova Exploration Ltd.

October 06, 2005 08:02 ET

Innova Exploration Ltd. Enters into Bought Deal for $35 Million

CAGARY, ALBERTA--(CCNMatthews - Oct. 6, 2005) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Innova Exploration Ltd. ("Innova") (TSX:IXL) has entered into a bought deal financing with a syndicate of underwriters led by Blackmont Capital Inc. and BMO Nesbitt Burns Inc. to issue 4,268,300 common shares of Innova at $8.20 per share for gross proceeds of approximately $35 million. In addition, Innova has granted the underwriters an option, exercisable in whole or in part, up to 48 hours prior to closing to increase the offering by up to 610,000 common shares at a price of $8.20 per common share, which would increase the aggregate size of the offering to $40 million if the option is fully exercised.

Proceeds of the offering will be used to fund Innova's ongoing exploration and development activities and for general corporate purposes, including the repayment of debt.

The common shares to be issued under this offering will be offered by way of a short form prospectus in all provinces of Canada and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

Closing of this offering is expected to occur on or before October 31, 2005 and is subject to receipt of all necessary regulatory approvals.

This press release may contain forward-looking statement including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which would cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Innova's operations or financial results are included in Innova's reports on file with Canadian securities regulatory authorities.

For further information, please refer to the Company's website: www.innovaexploration.com or, alternatively on www.sedar.com.

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

Innova Exploration Ltd. is an active junior oil and natural gas exploration and production company with core assets in British Columbia, Alberta and Saskatchewan. The Company has 35 million shares outstanding.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Innova Exploration Ltd.
    Kevin J. Gibson
    President
    (403) 699-8475
    or
    Innova Exploration Ltd.
    Kelly D. Kerr
    Vice-President
    (403) 699-8484