Online Energy Inc.
TSX VENTURE : ONL

Online Energy Inc.

April 25, 2012 08:59 ET

Online Energy Inc. Announces Completion of Previously Announced Financing

CALGARY, ALBERTA--(Marketwire - April 25, 2012) -

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

Online Energy Inc. ("Online" or the "Company") (TSX VENTURE:ONL) is pleased to announce that it has completed its previously announced public offering of: (i) common shares of the Corporation (the "Common Shares") for gross proceeds of approximately $656,000 (the "Offered Common Shares"); and (ii) Common Shares issued on a flow-through basis ("Flow-Through Shares") for gross proceeds of approximately $443,000, resulting in aggregate gross proceeds of approximately $1.1 million (the "Offering"). The Offering was conducted through a syndicate of agents led by Casimir Capital Ltd. and including Acumen Capital Finance Partners Limited.

At closing, Online issued an aggregate of 3,999,700 Common Shares, being comprised of 2,524,700 Offered Common Shares at a price of $0.26 per Offered Common Share and 1,475,000 Flow-Through Shares at a price of $0.30 per Flow-Through Share.

The Company anticipates that there may be one or more additional closings prior to May 11, 2012.

The Company intends to use the net proceeds of the Offering to fund the exploratory portion of its Greater Paddle River Alberta drilling program in west-central Alberta where the Company has successfully assembled an extensive land position of 136 net sections. This concentrated acreage position supports a large inventory of horizontal multi-frac well locations on a variety of resource plays including the Notikewin, Wilrich, Ostracod, Rock Creek, Nordegg and Duvernay formations. Online also maintains a growing inventory of low-risk vertical oil locations targeting the Viking and Ellerslie formations as well as a number of low-cost re-entry opportunities.

Cautionary Statements:

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Online. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Online in the United States. The Offered Common Shares and the Flow-Through Shares described in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered, sold or delivered in the United States absent an exemption from registration.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Online Energy Inc.
    Steve Dabner
    President & Chief Executive Officer
    (403) 262-1901 ext. 228
    sdabner@onln.ca

    Online Energy Inc.
    Thomas Love
    Chief Financial Officer
    (403) 262-1901 ext. 227
    tlove@onln.ca