Peerless Energy Inc.
TSX : PRY.A
TSX : PRY.B

Peerless Energy Inc.

December 07, 2006 08:22 ET

Peerless Energy Inc. Announces $17.5 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2006) -

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

Peerless Energy Inc. ("Peerless") (TSX:PRY.A) (TSX:PRY.B) is pleased to announce today that it has entered into a bought deal financing agreement to issue 5,000,000 Class A common shares by way of a short form prospectus, at a price of $3.50 per share, resulting in gross proceeds of $17,500,000. The underwriting syndicate is co-led by Clarus Securities Inc. and FirstEnergy Capital Corp. and includes Tristone Capital Inc., MGI Securities Inc., GMP Securities LP, Scotia Capital Inc. and Haywood Securities Inc. In addition, Peerless has provided the underwriters with an over-allotment option to purchase up to an additional 750,000 Class A common shares at a price of $3.50 per share, for a period of 30 days from closing, which if exercised in full will result in total gross proceeds of $20,125,000.

Proceeds from the offering will be used to repay indebtedness and for general corporate purposes.

The completion of the offering is subject to certain conditions including Peerless receiving all necessary regulatory approvals. The offering is expected to close on or about January 3, 2007.

Peerless Energy Inc. is a junior oil and gas company engaged in the exploration for, and development and production of, natural gas and light oil reserves primarily in the provinces of Alberta, Saskatchewan, and British Columbia.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Class A common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Peerless' Class A and Class B shares trade on the Toronto Stock Exchange under the symbols PRY.A and PRY.B respectively.

ADVISORY

This press release may contain forward-looking statements including management's assessment of future plans and operations, expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), acquisitions, commodity price and exchange rate fluctuation and uncertainties resulting from competition from other producers and ability to access sufficient capital from internal and external sources. Additional information on these and other factors that could affect Peerless' operations and/or financial results are included in Peerless' reports on file with Canadian securities regulatory authorities.


Contact Information

  • Peerless Energy Inc.
    Wade Becker
    President and Chief Executive Officer
    (403) 263-1590
    (403) 263-1591 (FAX)
    or
    Peerless Energy Inc.
    Dan Toews
    Vice President Finance and Chief Financial Officer
    (403) 263-1590
    (403) 263-1591 (FAX)
    Website: www.peerlessenergyinc.com