International Sovereign Energy Corp.
TSX : ISR

International Sovereign Energy Corp.

October 20, 2005 16:07 ET

International Sovereign Energy Corp.: Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2005) - International Sovereign Energy Corp. (TSX:ISR) (the "Company") reports that it has entered into an agreement with McFarlane Gordon Inc. to act on a "best-efforts" basis, as lead agent for a private placement financing of up to 1,100,000 common shares of the Company that qualify as flow-through shares for purposes of the Income Tax Act (Canada) at an issue price of $4.60 per share for gross proceeds up to $5,060,000 and up to 263,158 non flow-through common shares of the Company at an issue price of $3.80 per share for gross proceeds up to $1,000,000.00.

The agents will be paid a cash commission equal to 8.5% of the gross proceeds of the private placement. Closing is expected to be on or about October 31, 2005. The net proceeds of the flow-through portion of the private placement will be used for the Company's western Canadian operations and the non flow-through portion of the private placement will be used by the Company for general working capital purposes. The shares issued pursuant to the private placement will be subject to applicable hold periods and the private placement is subject to regulatory approval.

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.

Omair Choudhry

Chief Financial Officer

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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 12,064,697

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    Website: www.isove.com