Peerless Energy Inc.

Peerless Energy Inc.

May 20, 2005 11:49 ET

Peerless Energy Inc. Completes Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - May 20, 2005) - Peerless Energy Inc. ("Peerless" or the "Company") is pleased to announce that it has successfully completed its initial public offering. The offering was fully subscribed with gross proceeds of $9,500,000 including the full exercise of the $500,000 over-allotment option. A total of 9,500 units were subscribed for at a price of $1,000 per unit. FirstEnergy Capital Corp. acted as lead agent with Tristone Capital Inc., Canaccord Capital Corporation, and Orion Securities Inc. acting as agents. Each unit consists of 400 flow-through Class A shares at a price of $0.25 per share and 90 flow-through Class B shares at a price of $10.00 per share. With the completion of this offering Peerless has 8,200,001 Class A shares and 855,000 Class B shares issued and outstanding.

Peerless' team includes Wade Becker, President and CEO; Doug Clenchy, Vice President, Exploration; Paul Smith, Vice President, Land; Dan Toews, Vice President, Finance and CFO, and Bill Turko, Vice President, Engineering.

Peerless' directors are Wade Becker, Howard Crone, Kelvin Johnston, James Pasieka, and Rob Zakresky.

Peerless Energy Inc. is a junior oil and gas company focused on creating shareholder value by growing per share production and reserves through acquisitions and a focused exploration, development and exploitation plan.

The Company's strategy is to build a reserve, production and cash flow base in lower cost, proven growth areas by investing in high quality reservoirs. Peerless will also be pursuing a focused exploration strategy for natural gas in northeast British Columbia, the West Peace River Arch areas of northern Alberta, and the W5M area of Alberta, utilizing the Company's in-house technical expertise.

Subject to final approval, the Class A and Class B shares of Peerless will be listed for trading on the TSX Venture Exchange under the symbols PRY.A and PRY.B respectively. Trading is expected to commence in late May.

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)