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

Peerless Energy Inc.

September 29, 2005 14:59 ET

Peerless Energy Inc. Announces Increase in Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 29, 2005) - Peerless Energy Inc. (TSX VENTURE:PRY.A) (TSX VENTURE:PRY.B) ("Peerless" or the "Company") is pleased to announce that it has increased the size of its previously announced bought deal equity financing by an additional 1,400,000 Class A shares for a total issue of 9,800,000 Class A shares at $3.70 each, for total gross proceeds of $36.26 million pursuant to a financing agreement entered into with an underwriting syndicate led by FirstEnergy Capital Corp., and including Tristone Capital Inc., Canaccord Capital Corporation, Orion Securities Inc., Scotia Capital Inc., and MGI Securities Inc. The shares will be subject to a hold period of 4 months from closing. Insiders of the Company will be purchasing up to 100,000 shares of the offering.

At the closing of the financing, the Company will have 22.9 million Class A shares and 855,000 Class B shares issued and outstanding and corporate debt net of working capital of approximately $1.5 million.

Closing of the financing is subject to the concurrent closing of the previously announced asset acquisition and regulatory approval and is expected to occur on or about November 8, 2005.

This press release does not constitute an offer to sell the securities in the United States. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.

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