Pan-Global Energy Ltd.
TSX VENTURE : PIE

Pan-Global Energy Ltd.

June 09, 2005 15:16 ET

Pan-Global Energy Ltd.: $5,000,000 Debenture Financing Closed

CALGARY, ALBERTA--(CCNMatthews - June 9, 2005) - Pan-Global Energy Ltd (TSX VENTURE:PIE) ("Pan-Global") announces it has closed its previously announced $5,000,000 convertible debenture financing. The debentures will carry an interest rate of 7% per annum, payable semi-annually, become due on December 31, 2010 and be convertible at $1.00 per common share. Subject to the approval of the TSX Venture Exchange, Pan-Global may, at its option, pay the interest in shares, based on a 5% discount from the 20 day trading average. The debentures will contain change of control provisions such that if control of the Corporation changes, the debentures may be redeemed by the holder. The debentures will be secured, but subordinate to the Corporation's senior lender's position. A bonus of 10% was paid with respect to the financing.

Work will begin immediately on a program of workover and completion operations, production optimization strategies for existing oil and gas wells, as well as significant operating cost reduction initiatives. Drilling plans will be undertaken to further delineate discovered pools, earn additional lands, and satisfy the balance of the second year commitment in the Onion Lake agreement.

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 Company 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.

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
    Arn Schoch
    Chairman and CEO
    (604) 682-4984
    Cell: (604) 780-9810
    Email: arn@helix.net