Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

July 05, 2005 15:55 ET

Milagro Energy Inc.: $6,800,090 Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 5, 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 entered into a bought deal private placement financing agreement with a syndicate of underwriters led by Orion Securities Inc. and including FirstEnergy Capital Corp. for total gross proceeds of $6,800,090 (the "Offering"). The Offering will consist of 2,000,000 Canadian Exploration Expense flow-through common shares and 868,000 Canadian Development Expense flow-through common shares and 2,143,000 common shares at a price of $1.50, $1.44, and $1.19 per share, respectively. Completion of the Offering will result in the issuance of 5,011,000 common shares for total gross proceeds of $6,800,090. Closing is expected to take place on or about July 20, 2005.

The proceeds received from the sale of the flow-through common shares will be used by Milagro to fund its ongoing exploration and development program. The completion of this private placement is subject to regulatory approval.

Milagro is an emerging company engaged in the acquisition, exploration, development and production of oil and gas reserves in western Canada. Milagro is listed for trading under the symbol "MIG" 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) 693-4000
    or
    Milagro Energy Inc.
    Brad Haack
    CFO
    (403) 693-4000 or Toll Free: 1 (866) 693-4022
    www.milagroenergy.com