Midnight Oil Exploration Ltd.
TSX : MOX

Midnight Oil Exploration Ltd.

May 17, 2006 15:17 ET

Midnight Oil Exploration Ltd. Announces Closing of $20.4 Million Equity Financing

CALGARY, ALBERTA--(CCNMatthews - May 17, 2006) -

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Midnight Oil Exploration Ltd. ("Midnight") (TSX:MOX) is pleased to announce today that it has completed its previously announced flow-through common share financing of 4 million Flow-Through Shares at an issue price of $5.10 per Flow-Through Share, resulting in gross proceeds to Midnight of $20,400,000. The Flow-Through Shares were sold through a syndicate of underwriters co-led by Sprott Securities Inc. and GMP Securities L.P., and including MGI Securities Inc., Canaccord Capital Corporation and CIBC World Markets Inc.

Midnight is a crude oil and natural gas exploration and production company headquartered in Calgary, Alberta, Canada. Its common shares trade on the TSX under the symbol "MOX".

Forward-Looking Statements

Certain information set forth in this press release, including management's assessment of the future plans and operations may contain forward-looking statements under applicable securities laws. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Midnight's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, economic changes, the effects of weather, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Midnight 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 by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Midnight will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect Midnight's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website at www.sedar.com . Furthermore, Midnight disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.

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