Insignia Energy Ltd.

Insignia Energy Ltd.

September 10, 2008 16:30 ET

Insignia Energy Ltd. Issues $9.8 Million of Equity to Tricap Partners Ltd.

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2008) - Insignia Energy Ltd. ("Insignia") (TSX VENTURE:ISN) is pleased to announce that it has issued 1,440,187 common shares at a price of $6.80 per share to Tricap Partners Ltd. ("Tricap") for gross proceeds to Insignia of $9,793,271.60. Insignia intends to use the gross proceeds for general working capital purposes. These shares were issued pursuant to a backstop provided by Tricap in connection with the recently completed plan of arrangement (the "Arrangement") whereby Insignia acquired substantially all of the assets of a private oil and gas company and was recapitalized. After giving effect to the exercise and expiry of all warrants issued in connection with the Arrangement and the backstop provided by Tricap (but prior to giving effect to the $25 million equity line for the issuance of up to 3,676,470 at an issue price of $6.80 per share) Insignia has 12,618,738 shares outstanding.

About Insignia

Insignia is a Calgary-based oil and natural gas company engaged in the exploration for and the acquisition, development and production of natural gas and crude oil in western Canada. Insignia's common shares trade on the TSX Venture Exchange under the symbol "ISN".

Cautionary Statements

Certain information set forth in this press release, including without limitation anticipated use of proceeds, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Insignia's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Insignia Ltd's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statement will transpire or occur, or if any of them do so, what benefits that work and the combined company will derive therefrom. Insignia disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Insignia Energy Ltd.
    Jeff Newcommon
    President and CEO
    (403) 536-8138