Pan-Global Energy Ltd.
TSX VENTURE : PIE

Pan-Global Energy Ltd.

November 14, 2005 17:01 ET

Pan-Global Announces Private Placement and Appointment of Officers

CALGARY, ALBERTA--(CCNMatthews - Nov. 14, 2005) - Pan-Global Energy Ltd. (the "Corporation") (TSX VENTURE:PIE) announces a brokered private placement, subject to a number of conditions precedent including due diligence, of up to 12,500,000 shares of the Corporation at the price of $0.40 per share for gross proceeds of $5,000,000 (the "Offering") with Jennings Capital Inc. ("Jennings") of Calgary, Alberta to act as lead agent on behalf of a syndicate of investment dealers. A commission of 7 % of the gross proceeds of the Offering is payable and the issuance of agents' warrants (the "Agents' Warrants") equal to 7% of the number of common shares sold under the Offering. Each Agent Warrant will entitle the holder to purchase one share of the Corporation at the price of $0.40 each expiring December 1, 2006. Jennings will also receive a work fee equal to 5% of the gross commission of the Offering.

The proceeds of the Offering will be used to drill and complete the next phase of the exploitation and exploration on the Onion Lake land block. A program of 8 new wells, 2 recompletions and associated facilities will be initiated in December. These wells will include gas and heavy oil targets and will comprise exploration earning wells and development locations.

In conjunction with the financing, Mr. Arn Schoch has resigned as Chairman, President and Chief Executive Officer of the Corporation. In his place, Mr. Gord Harris has been appointed Chairman of the Board of Directors and Interim Chief Executive Officer and Mr. Richard Naden has been appointed Interim President. Messers Harris and Naden will be responsible for setting the Corporation's strategies over the near term and ensuring the next phase of the drilling program is completed. Mr. Harris has recently completed the re-structuring of another junior oil and gas company and has over 30 years experience in operations, business development and finance. Mr. Naden has 24 years of executive and technical industry experience in conventional oil & gas and heavy oil exploitation and operations.

In addition, a total of 765,000 stock options have been granted to directors, officers and employees at an exercise price of $0.50 per share for a term of five years.

Three earning wells were drilled during October, finishing the second year of a three year drilling commitment by the Company on the Onion Lake lands. All three wells were cased and completion operations have been initiated on two wells. Prospective intervals include multiple gas zones in one well and Dina heavy oil pay in all three wells.

The Corporation is an oil and gas exploration company whose prospective oil and gas property is one of the largest contiguous land bases in Eastern Alberta and Western Saskatchewan. The Corporation is entitled to exclusively explore and develop approximately 148,000 acres of existing and new Treaty Land Entitlement (TLE) Reserves in Eastern Alberta and Western Saskatchewan under the terms of an agreement with Onion Lake Energy Ltd., which is solely owned by Onion Lake First Nation of Saskatchewan/Alberta.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Pan-Global. Actual results realized may vary materially from the information provided in this release. As a result, there is no representation by Pan-Global that actual results realized in the future will be the same in whole or in part as those presented herein.

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

Contact Information

  • Pan-Global Energy Ltd.
    Richard Naden
    Interim President
    (403) 269-6911, Ext. 222
    or
    Pan-Global Energy Ltd.
    Gordon D. Harris
    Chairman and Interim Chief Executive Officer
    (403) 216-5821