Magnus Energy Inc.

Magnus Energy Inc.

August 08, 2005 16:19 ET

Magnus Energy Closes Financing and Completes Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Aug. 8, 2005) - Magnus Energy Inc. (TSX VENTURE:MEI.A) (TSX VENTURE:MEI.B) ("Magnus") is pleased to announce that it has now successfully raised an aggregate amount of $12,000,000 in its initial public offering, following the placing of $1,087,000 pursuant to additional closings of its over-allotment option. First Associates Investments Inc. acted as lead agent for the offering which was fully subscribed. In the subsequent closings, a total of 1,087 Units were subscribed for at a price of $1000 per Unit. Each Unit consists of 500 flow-through Class A Shares at a price of $0.26 per share and 87 flow-through Class B Shares at a price of $10.00 per share. Following the subsequent closings, Magnus has 15,415,000 Class A Shares and 1,044,000 Class B Shares issued and outstanding.

Magnus also announces that the TSX Venture Exchange issued a bulletin on August 5, 2005 to list all of the securities of Magnus for trading commencing on Tuesday, August 9, 2005 under the symbols MEI.A and MEI.B for the Class A Shares and the Class B Shares, respectively.

Magnus also announces that the Board of Directors approved the granting of stock options to officers, directors, employees and consultants of the company. Options to purchase 1,515,000 Class A Shares of Magnus were issued by the company on July 31, 2005 with an exercise price of $0.40 per share. The options are for a term of five years with vesting provisions.

Magnus Energy is a junior oil and gas company focused on the acquisition, exploration, exploitation and development of oil and natural gas in western Canada.

ADVISORY: Certain information regarding Magnus Energy Inc. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

15,415,000 Class A Shares

1,044,000 Class B Shares

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

Contact Information

  • Magnus Energy Inc.
    Murray M. Stewart
    President and Chief Executive Officer
    (403) 215-2426
    Magnus Energy Inc.
    Suite 1420, 1122 - 4th Street S.W.
    Calgary, Alberta T2R 1M1
    (403) 215-2426
    (403) 261-6601 (FAX)