International Sovereign Energy Corp.

International Sovereign Energy Corp.

November 01, 2005 15:46 ET

International Sovereign Energy Corp.: Flow-Through Financing Completed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2005) - International Sovereign Energy Corp. (the "Corporation") (TSX:ISR) announces that it has closed its previously announced private placement consisting of 1,100,000 "flow-through" Common Shares for total gross proceeds of $5,060,000.00. MGI Securities Inc. acted as agent for the private placement and was paid a cash commission equal to 8.5% of the proceeds of the private placement. All the shares issued are subject to a four month hold period expiring March 1, 2006. The proceeds received by the Corporation from the sale of the flow-through Common Shares will be used for the Corporation's Canadian operations, which use shall be Canadian Exploration Expenses that qualify as Canadian exploration expenses for purposes of the Income Tax Act (Canada) and which will be renounced in favor of the holders with an effective date of no later than December 31, 2005.

The second portion of the previously announced private placement, consisting of 263,158 common shares at a price of $3.80 per share has yet to be closed by the agent on a best efforts basis.

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia, Calgary, Alberta and Islamabad, Pakistan and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.

Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.

Shares Outstanding: 13,164,697

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Senior Vice President & CFO
    (604) 684-7372
    (604) 684-2407 (FAX)