Opal Energy Corp.

Opal Energy Corp.

May 04, 2007 12:48 ET

Opal Raising $25 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 4, 2007) -


Opal Energy Corp (the "Company") (TSX VENTURE:OPA) is pleased to report that it has arranged a non-brokered Private Placement for $25 million (the "Offering"). The Offering consists of 125,000,000 common shares of the Company at a price of $0.20 per share. Common shares issued pursuant to the Offering will be subject to a 4-month hold period. A finders fee of 6.0% is payable in respect of the Offering, which is subject to regulatory approval.

Following a business combination in late 2006 and a number of key staffing additions, the Company is in a unique position to establish itself as the premier developer of giant Texas onshore natural gas resources. Opal CEO Ron Oligney said Tuesday that he is "very pleased with the support for the Opal business plan shown by a number of significant European institutions and other investors, which will put Opal on its strongest financial footing ever." This Offering is expected to fully fund the emerging "Texas Giants" strategy.

Opal Energy

Opal Energy Corp, through its U.S. subsidiary Opal Energy Inc., offers an aggressive, disciplined and results-oriented vehicle to invest in the U.S. Exploration and Production sector with a particular focus on natural gas exploration targets in South Texas. The Company is actively identifying, funding and drilling a portfolio of modest to high to extremely high-return natural gas exploration targets. Drilling risk is mitigated using advanced seismic techniques and by taking carried working interests in most wells (attracting funding partners for its wells). Opal has undertaken a 75 square mile 3D seismic shoot and will deploy an estimated $17 million to upgrade and expand its portfolio of drilling prospects in 2007-08.

On behalf of the Board of Directors

Opal Energy Corp

Ronald E Oligney, CEO and Director

John H. McAdam, President and Director

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, production activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, production and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Opal does not assume a duty to update these forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

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

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