Masters Energy Inc.
TSX : MSY

Masters Energy Inc.

April 03, 2006 08:53 ET

Masters Energy Inc. Announces $6.1 Million Bought-Deal Financing

CALGARY, ALBERTA--(CCNMatthews - April 3, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Masters Energy Inc. (TSX:MSY) ("Masters" or "the Company") has entered into a bought-deal financing agreement to issue 1,000,000 common shares on a "flow-through" basis at $6.10 per common share for gross proceeds of $6,100,000. Masters has entered into an agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and GMP Securities L.P., and including Dundee Securities Corp., MGI Securities Inc., Raymond James Ltd., Canaccord Adams Limited, Haywood Securities Inc., Octagon Capital Corporation and Tristone Capital Inc.

The proceeds of the private placement financing will be used to fund a portion of Masters' 2006 exploration program. Subject to Masters receiving all necessary regulatory approvals, the private placement financing is scheduled to close on April 21, 2006.

The shares of the company issued pursuant to this private placement will be subject to a four month hold period from the date of closing of the financing.

Masters Energy Inc. is an Alberta based corporation engaged in the business of acquiring or exploring for and developing oil and natural gas reserves in western Canada. Masters' common shares are listed on the Toronto Stock Exchange under the trading symbol "MSY".

The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-looking Statements

Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of commodity prices, currency fluctuations, uncertainties of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources: as a consequence, actual results may differ materially from those anticipated. The Company assumes no obligation to update the forward-looking statements contained herein or to update the reasons why actual results could differ from those contemplated by the forward-looking statements, unless so required by applicable securities law.

Contact Information

  • Masters Energy Inc.
    Geoff Merritt
    President and CEO
    (403) 290-1785
    or
    Masters Energy Inc.
    Randall Boyd
    Chief Financial Officer
    (403) 290-1785
    Website: www.mastersenergy.com