Kootenay Energy Inc.

Kootenay Energy Inc.

November 09, 2005 08:50 ET

Kootenay Energy Inc. Completes $3,683,000 Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2005) - Kootenay Energy Inc. (TSX VENTURE:KTY) (the "Corporation") is pleased to announce that the Corporation has completed the issuance of 4,603,750 common shares of the Corporation at a purchase price of $0.80 per common share or an aggregate amount up to $3,683,000. The common shares issuable pursuant to this private placement are subject to a four (4) month hold expiring on March 4, 2006. Proceeds from this private placement are intended to be used for the drilling of up to six (6) wells on the Corporation's petroleum and natural gas properties and to acquire certain petroleum and natural gas production and related assets located in Saskatchewan.

In connection with the private placement, certain officers, directors and their affiliates purchased 656,250 common shares. Mark A. Naylor, President and Chief Executive Officer of the Corporation, purchased 312,500 common shares or 1.6% of the issued and outstanding common shares of the Corporation. Following this transaction, Mark A. Naylor owns or directly controls 2,062,500 common shares or 10.8% of the issued and outstanding common shares of the Corporation. The common shares were acquired for investment purposes only and Mr. Naylor has no present intention to acquire ownership of, or control over additional securities of the Corporation.

Kootenay Energy Inc. is an emerging junior oil and natural gas company.

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

Contact Information

  • Kootenay Energy Inc.
    Mark A. Naylor
    President and Chief Executive Officer
    (403) 355-9800
    #520, 815 - 8th Avenue S.W.
    Calgary, Alberta T2P 3P2