Nevarro Energy Ltd.

Nevarro Energy Ltd.

June 07, 2006 12:45 ET

Nevarro Announces Closing of Private Placement

CALGARY, ALBERTA--(CCNMatthews - June 7, 2006) -

(Not for distribution to U.S. newswire services or for dissemination in the United States of America)

NEVARRO ENERGY LTD. (TSX VENTURE:NEL) ("Nevarro") is pleased to announce it has closed it previously announced private placement of flow-through shares and common shares for gross proceeds of $3,500,000.

1,417,276 common shares were issued on a "flow through" basis under the Income Tax Act at a price of $2.45 per share and 12,300 common shares were issued at a price of $2.25 per share. The flow-through shares entitle the subscribers to be renounced amounts qualifying as Canadian development expenses which entitle the subscribers to a 30% tax write-off in 2006 with the balance available on a declining balance basis in future years.

Acumen Capital Finance Partners Limited acted as agent on the offering.

The shares issued under the offering are subject to a four month hold period.

Nevarro intends to apply the proceeds to its previously announced 2006 capital expenditure program. The program is currently underway and includes plans for drilling of up to 50 gross (25 net) development wells in its heavy oil core areas in west central Saskatchewan.

11,881,635 common shares are outstanding following the offering.

Nevarro is a junior oil and gas company engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nevarro Energy Ltd.
    J.W. Grant Robertson
    Vice-President, Business Development
    (403) 231-1230