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

Peerless Energy Inc.

January 03, 2007 09:05 ET

Peerless Energy Inc. Announces Closing of $20.1 Million Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Jan. 3, 2007) -

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 the closing of the Company's previously announced bought deal financing completed through a syndicate of underwriters co-led by Clarus Securities Inc. and FirstEnergy Capital Corp., and including Tristone Capital Inc., MGI Securities Inc., GMP Securities L.P., Scotia Capital Inc. and Haywood Securities Inc. Pursuant to the offering, the Company issued 5,750,000 Class 'A' shares at a price of $3.50 per share for total gross proceeds of $20,125,000 including 750,000 Class 'A' shares issued pursuant to the exercise in full of the underwriters' over-allotment option.

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' 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 shares 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