Mahalo Energy Ltd.
TSX : CBM

Mahalo Energy Ltd.

July 29, 2005 09:30 ET

Mahalo Energy Ltd. Completes $50,400,000 Million Prospectus Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - July 29, 2005) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States

Mahalo Energy Ltd. (the "Corporation") (TSX:CBM) is pleased to announce that it has completed its previously announced initial public offering by way of long form prospectus of 11,200,000 common shares ("Common Shares") at a price of $4.50 per share for gross proceeds of approximately $50,400,000. The offering was completed by GMP Securities Ltd., as lead agent for a syndicate including Canaccord Capital Corporation, Raymond James Ltd., First Associates Investments Inc., Orion Securities Inc. and Acumen Capital Finance Partners Limited (collectively the "Agents"). Common Shares of the Corporation shall commence trading on the Toronto Stock Exchange under the symbol "CBM" at the open of markets on July 29, 2005.

The Corporation will use a portion of the net proceeds to acquire certain coalbed methane properties in the Island and Shelton areas of Oklahoma, United States. The Corporation will also use a portion of the net proceeds to participate in certain farmout agreements on properties located in the Corbett and Camrose areas of Alberta.

Additional information about the Corporation and this transaction is available on SEDAR (www.sedar.com).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements

Certain information regarding the Corporation set forth in this document, including management's assessment of the Corporation's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Corporation's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Corporation.

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

Contact Information

  • Mahalo Energy Ltd.
    Duncan Chisholm
    Chief Executive Officer
    (403) 262-9623
    or
    Mahalo Energy Ltd.
    Milton Porter
    Chief Financial Officer
    (403) 262-9623
    (403) 262-7049 (FAX)
    or
    Mahalo Energy Ltd.
    Suite 300, 808 - 1st Street S.W.
    Calgary, Alberta T2P 1M9