Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

October 23, 2006 08:38 ET

Open Range Energy Corp. 'TSX:ONR' Announces $7.5 Million Bought Deal Common Share Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 23, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Open Range Energy Corp. (TSX:ONR) is pleased to announce that it has entered into a private placement common share financing agreement, on a bought deal basis, with an underwriting syndicate led by Sprott Securities Inc. and including GMP Securities L.P., Paradigm Capital Inc., Tristone Capital Inc., Acumen Capital Finance Partners Limited and Haywood Securities Inc. Open Range will issue 2,113,000 common shares at $3.55 per common share for total gross proceeds of $7.5 million, pursuant to certain exemptions from prospectus requirements.

Open Range has also granted Sprott Securities an underwriters' option to buy up to an additional 211,300 common shares for additional gross proceeds of approximately $750,000.

The private placement financing is scheduled to close on or about November 9, 2006 and is subject to regulatory approval and completion of definitive documentation.

The proceeds of the common share offering will be used to fund Open Range's ongoing exploration and development activities.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.

Reader Advisory

This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.

THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    (403) 205-3704
    Website: www.openrangeenergy.com