Nextraction Energy Corp.
TSX VENTURE : NE

Nextraction Energy Corp.

March 01, 2011 06:00 ET

Nextraction Announces $2.5 Million Bought Deal Financing and Provides Update on Its Previously Announced Non-brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - Nextraction Energy Corporation (TSX VENTURE:NE) -

NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Nextraction Energy Corporation (TSX VENTURE:NE) ("Nextraction" or the "Company") is pleased to announce that it has entered into an agreement with NCP Northland Capital Partners Inc. (the "Underwriter") for the issuance of 1,157,400 units (the "Units") of the Corporation, on a bought deal basis, at a price of $2.16 per Unit for gross proceeds of $2,499,984 (the "Offering"). Each Unit will consist of one common share of the Company (a "Common Share") and one common share of the Company issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (a "Flow-through Share"). Each Common Share will have a deemed price of $1.0005 per Common Share and each Flow- through Share will have a deemed price of $1.1595 per Flow-through Share. The Common Shares and the Flow-through Shares will be subject to a four month hold period.

In connection with the Offering, the Company's previously announced $6 million non-brokered private placement of Units has been reduced to $3.5 million (please see Nextraction's news release dated February 16, 2011 on www.sedar.com). 

The net proceeds from the sale of the Offering will be used for development of the Company's properties and for general working capital purposes.

The Units will be offered on a private placement basis in the provinces of British Columbia, Alberta and Ontario.

The Offering is scheduled to close on or about March 15, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

On behalf of the Board of Nextraction Energy Corp.

Mark S. Dolar, President and CEO

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and gas producing company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves and plays that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company has offices in Vancouver, B.C., Calgary, Alberta and Golden, Colorado. In addition to a project in the Provost field in southern Alberta, Nextraction has current gas production and is currently developing a multi-well tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, a Chattanooga shale gas resource play in eastern Kentucky/Tennessee, and is conducting seismic operations with the intent of commencing exploration efforts for Bakken oil in the Williston Basin.

FORWARD-LOOKING STATEMENTS DISCLAIMER

Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Such forward-looking statements or information include, without limitation, statements or information about the Company's business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the accuracy of recovery rates and production in surrounding areas. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act).

Neither the TSX Venture Exchange nor its Regulations Services Provider have reviewed this release and does not accept responsibility for the adequacy or accuracy of this release.

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