Nexstar Energy Ltd.
TSX VENTURE : NXE.A
TSX VENTURE : NXE.B

Nexstar Energy Ltd.

August 25, 2006 10:47 ET

Nexstar Energy Closes Over-Allotment

CALGARY, ALBERTA--(CCNMatthews - Aug. 25, 2006) - Nexstar Energy Ltd. ("Nexstar Energy" or the "Company") (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) is pleased to announce that the closing of the remaining $400,000 of the original $1,000,000 over-allotment amount has been completed today.

As previously announced, the Company's initial public offering (the "Offering") was fully subscribed resulting in gross proceeds of $12,000,000, including $1,000,000 from the full exercise of the over-allotment option. A total of 12,000 Units (the "Units") were subscribed for in the Offering at a price of $1,000 per Unit. Each Unit consists of 400 flow-through Class A Shares at a price of $0.25 per share and 90 flow-through Class B Shares at a price of $10.00 per share. After completion of the Offering, the Company has 9,200,000 Class A Shares and 1,080,000 Class B Shares issued and outstanding. MGI Securities Inc. acted as lead agent for the Offering on behalf of a syndicate that included Canaccord Capital Corporation and CIBC World Markets Inc.

Nexstar Energy is an emerging junior oil and gas company focused on the exploration, development, and exploitation of oil and natural gas reserves in western Canada.

ADVISORY: Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

9,200,000 Class A Shares

1,080,000 Class B Shares

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

Contact Information

  • Nexstar Energy Ltd.
    Peter A. Carwardine
    President and CEO
    (403) 263-6133 ext.201
    (403) 263-3629 (FAX)
    Email: peterc@nexstar-energy.com
    or
    Nexstar Energy Ltd.
    Brian J. Spilchen
    Vice-President Finance and CFO
    (403) 263-6133 ext.202
    (403) 263-3629 (FAX)
    Email: brians@nexstar-energy.com
    or
    Nexstar Energy Ltd.
    603 - 7 Avenue SW, Suite 525
    Calgary, Alberta T2P 2T5