Monterey Exploration Ltd.

Monterey Exploration Ltd.

October 01, 2009 08:34 ET

Monterey Exploration Ltd. Completes $16.1 Million Financing and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2009) - Monterey Exploration Ltd. ("Monterey" or the "Corporation") (TSX:MXL) has closed its previously announced offering of 5.45 million common shares at an issue price of $1.85 per common share and 2.65 million common shares issued on a flow-through basis at an issue price of $2.28 per flow-through share for total gross proceeds of approximately $16.1 million (the "Offering"). The Offering was led by Cormark Securities Inc. and included FirstEnergy Capital Corp., Acumen Capital Finance Partners Limited, Wellington West Capital Markets Inc. and Salman Partners Inc. Proceeds of the Offering will be used to finance Monterey's exploration and development of its Montney gas project located in the Groundbirch area of northeast British Columbia, additional continuing exploration and development activities, and other general corporate purposes. The gross proceeds from the sale of the flow-through common shares will be used to fund ongoing exploration activities eligible for Canadian exploration expenses which will be renounced in favor of the subscribers of the flow-through common shares effective on, or before December 31, 2009.

After giving effect to the Offering, Monterey has 41,002,500 common shares issued and outstanding.

Operational Update

Monterey has commenced operations on its 3 well horizontal development and vertical step out test program at Groundbirch with the first horizontal well spud on September 21, 2009. The second horizontal location is currently being constructed and prepared for drilling. Monterey's drilling and completion operations for the three well program is scheduled to continue throughout the remainder of 2009 and into early 2010. The corporation's third quarter results are scheduled to be released on November 11, 2009 after the completion of the business day.

Management is very optimistic about the future of Monterey and looks forward to updating the shareholders as the Montney project and other business initiatives continue to develop.

Reader Advisory:

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking information"). Specifically, this press release contains forward-looking information relating to the use of proceeds of the Offering, the renouncing of Canadian exploration expenses and Monterey's drilling and completion operations. The forward-looking information is based on certain key expectations and assumptions made by Monterey, including assumptions concerning the state of the economy and the exploration and production business, which expectations and assumptions management of Monterey believes to be reasonable at this time. Although Monterey believes that the expectations and assumptions on which such forward-looking information is based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking information as Monterey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Offering by Monterey may change if the board of directors of Monterey determines that it would be in the best interests of Monterey to deploy the proceeds for some other purpose. Drilling and completion plans may change depending on drilling results, the state of the economy and management's assessment of other oil and gas opportunities. The forward-looking information contained in this press release is presented as of the date hereof and Monterey undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Monterey Exploration Ltd.
    Patrick D. Manuel, P.Eng.
    President and Chief Executive Officer
    (403) 691-7725
    Monterey Exploration Ltd.
    David M. Fisher, C.A.
    Vice President, Finance & Chief Financial Officer
    (403) 691-7725