Midnight Oil Exploration Ltd.
TSX : MOX

Midnight Oil Exploration Ltd.

November 07, 2006 09:00 ET

Midnight Oil Exploration Ltd. Completes $16.8 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 7, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Midnight Oil Exploration Ltd. ("Midnight" or the "Company") (TSX:MOX) is pleased to announce that it has closed its previously announced offering of 5.5 million common shares at an issue price of $3.05 per common share for gross proceeds of approximately $16.8 million which includes 500,000 common shares issued pursuant to the over-allotment option granted to the underwriters at the same price. This financing was led by Sprott Securities Inc. ("Sprott"), and included GMP Securities L.P., CIBC World Markets Inc., MGI Securities Inc., Canaccord Capital Corporation and Dundee Securities Corporation. The net proceeds of the offering will be used to temporarily reduce bank debt, which will be redrawn and applied as needed to fund the Company's ongoing capital expenditure program and for general working capital purposes.

After giving effect to the offering, Midnight has 47,827,829 million common shares issued and outstanding.

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".

The common shares offered have not 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 applicable exemption from the registration requirements. This press release will 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.

ADVISORY

Certain information set forth in this press release, including management's assessment of the future plans and operations, anticipated closing of the financing and the use of the proceeds from the financing, may constitute 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 exhaustive. 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.


Contact Information

  • Midnight Oil Exploration Ltd.
    Fred Woods
    President and Chief Executive Officer
    (403) 303-8505
    (403) 264-0085 (FAX)
    Email: fwoods@midnightoil.ca
    or
    Midnight Oil Exploration Ltd.
    Judy Stripling
    Executive Vice President and Chief Financial Officer
    (403) 303-8502
    (403) 264-0085 (FAX)
    Email: jstripling@midnightoil.ca
    Website: www.midnightoil.ca