Kierland Resources Ltd.
TSX VENTURE : KIR

December 16, 2008 16:49 ET

Kierland Resources Announces Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2008) - Kierland Resources Ltd. (formerly 'Bandon Capital Resources Ltd.') ("Kierland" or the "Company") (TSX VENTURE:KIR) announces a private placement of up to $800,000 (the "Offering"), comprised of Units of Convertible Debentures ("Debentures") and Share Purchase Warrants ("Purchase Warrants"), Units of Flow-Through Common Shares ("Flow-Through Shares") and Purchase Warrants and Units of Common Shares ("Common Shares") and Purchase Warrants. Each Debenture Unit is comprised of a $1,000 Convertible Debenture and 20,000 Purchase Warrants. Each Debenture has a five year term, yields 12% annually and may be converted at the option of the holder at any time prior to maturity into 20,000 Common Shares of the Company at a price of $0.05 per share. Each Flow-Through Unit is issued at a price of $0.01 per Unit and is comprised of one (1) Flow-Through Share of the Company and one (1) Purchase Warrant. Each Common Share Unit is issued at a price of $0.01 per Unit and is comprised of one (1) Common Share and one (1) Purchase Warrant. The Purchase Warrants are exercisable at a price of $0.05 per share for one year from the closing date of the Offering and $0.10 per share for two years from the closing date of the Offering and will entitle the holder to acquire Flow-Through Shares of the Company entitling the holder to a 100% tax deduction as CEE in the year of exercise. The Company intends to close the Offering in two (2) tranches scheduled for December 31, 2008 and January 30, 2009. The Common Shares, Flow-Through Common Shares and Purchase Warrants to be issued are subject to a four month hold and approval by the TSX Venture Exchange. The funds from the Offering will be utilized by the Company on the continued exploration and development of the Company's petroleum properties.

About Kierland Resources

Kierland Resources is a publicly traded, junior oil and gas company focused on exploration and development of oil and natural gas in Alberta. The Company remains focused on organic growth through the drill bit on its existing acreage while continuing a process of adding accretive acquisitions in 2008 and 2009.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The term BOE or BOEs may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion rate of 6 Mcf per one (1) BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Issued Common Shares: 28,942,308

The TSXV has neither approved nor disapproved the contents of this news release and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Kierland Resources Ltd.
    Richard J. Boswell
    President and Chief Executive Officer
    (403) 510-2957
    Email: rchfield@shaw.ca
    or
    Kierland Resources Ltd.
    750, 630 - 6th Avenue SW
    Calgary, Alberta T2P 0S8