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

Peerless Energy Inc.

November 09, 2005 15:24 ET

Peerless Energy Inc. Announces Closing of Northeast British Columbia Asset Acquisition and $36.26 Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2005) - Peerless Energy Inc. (TSX VENTURE:PRY.A) (TSX VENTURE:PRY.B) ("Peerless" or the "Company") is pleased to announce the closing of the Company's previously announced asset acquisition (the "Acquisition") of multi-zone, operated long life natural gas reserves and production in the Company's Northeast British Columbia project area for $45.5 million. The aggregate consideration is comprised of, after working capital adjustments, approximately $40.55 million in cash and 1,300,000 in Peerless Class A shares.

Peerless now has over 40 net development and exploitation drilling opportunities in inventory, over 25 net exploration locations, access to approximately 130,000 net acres (more than 200 net sections) of undeveloped land, and access to approximately 500 km2 of 3-D and 2,000 km of 2-D seismic data.

In conjunction with the Acquisition, Peerless also closed the previously announced bought deal financing agreement with a syndicate of underwriters led by FirstEnergy Capital Corp., and including Tristone Capital Inc., Canaccord Capital Corporation, Orion Securities Inc., Scotia Capital Inc., and MGI Securities Inc., in which the Company issued 9,800,000 Class 'A' common shares at an issue price of $3.70 for total gross proceeds of $36.26 million. The shares are subject to a hold period of 4 months from closing.

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.

Peerless' Class A and Class B shares trade on The TSX Venture 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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