Pan-Global Energy Ltd.

Pan-Global Energy Ltd.

January 23, 2006 13:54 ET

Pan-Global Energy Ltd.: Convertible Loan Announced

CALGARY, ALBERTA--(CCNMatthews - Jan. 23, 2006) - Pan-Global Energy Ltd. (the "Company") (TSX VENTURE:PIE) announced that it has, subject to regulatory approval, entered into a short term loan agreement with Newmex Minerals Inc. ("Newmex") for a bridge loan of up to $1,000,000 until April 30, 2006, at which time the parties anticipate that their previously announced merger will be completed. The loan agreement provides Newmex the right to convert principal into common shares of the Company on the basis of $0.66 per share. Proceeds of the loan will be used for working capital and existing well development and tie in costs.

Both Newmex and the Company are finalizing their due diligence and are working towards a definitive merger agreement which is expected to be announced shortly.

The Company 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.

Forward-Looking Statements

Statements contained in this press 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 & COO
    (403) 269-6911 ext 222
    Pan-Global Energy Ltd.
    Gordon D. Harris
    Chairman and Interim Chief Executive Officer
    (403) 216-5821