Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

July 20, 2005 18:29 ET

Milagro Completes $7.2 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 20, 2005) -

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

Milagro Energy Inc. (TSX:MIG) ("Milagro") is pleased to announce that it has completed a bought deal private placement financing with a syndicate of underwriters led by Orion Securities Inc. and including FirstEnergy Capital Corp. A total of 2,000,000 Canadian exploration expense "flow-through" common shares were issued at a price $1.50 per share, 1,131,500 Canadian development expense "flow-through" common shares were issued at a price of $1.44 per share and 2,143,000 common shares were issued at a price of $1.19 per share for total gross proceeds of $7,179,530 (the "Offering").

The proceeds received from Offering will be used by Milagro to fund the exploration and development of petroleum and natural gas reserves.

Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and gas reserves in western Canada. Milagro is listed for trading on the Toronto Stock Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the common shares in the United States. The common shares will not be and have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Contact Information

  • Milagro Energy Inc.
    Jeffrey Rekunyk
    President and CEO
    (403) 693-4006 or Toll Free: 1-866-693-4022
    or
    Milagro Energy Inc.
    Brad Haack
    CFO
    (403) 693-4007 or Toll Free: 1-866-693-4022
    Website: www.milagroenergy.com