Pegasus Oil & Gas Inc.
TSX VENTURE : POG.A
TSX VENTURE : POG.B

Pegasus Oil & Gas Inc.

April 18, 2007 09:04 ET

Pegasus Oil & Gas Inc. Announces $9.0 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - April 18, 2007) -

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

Pegasus Oil & Gas Inc. (TSX VENTURE:POG.A)(TSX VENTURE:POG.B) ("Pegasus" or the "Company") is pleased to announce today that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including GMP Securities L.P., Blackmont Capital Inc., and Canaccord Capital Corporation (collectively the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale on a bought deal basis, 3,750,000 Class A common shares of Pegasus at a price of $2.40 per Class A share for aggregate proceeds of $9.0 million. All sales will be made on a private placement basis pursuant to exemptions from the prospectus requirements of applicable securities laws.

This equity issue is subject to regulatory approval and closing is expected to take place on or about May 9, 2007. The shares will be subject to a four-month hold period. Proceeds from this offering will be used to finance the Company's ongoing development and exploration activity and for general corporate purposes.

Pegasus' Class A and Class B shares trade on the TSX Venture Exchange under the symbols "POG.A" and "POG.B" respectively. The Company presently has 20.2 million Class A shares and 1.0 Class B shares outstanding.

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

Contact Information

  • Pegasus Oil & Gas Inc.
    Patrick Mills
    President and Chief Executive Officer
    (403) 521-6307
    or
    Pegasus Oil & Gas Inc.
    Kevin Angus
    Executive Vice President
    (403) 521-6306
    or
    Pegasus Oil & Gas Inc.
    Darcy Anderson
    Chief Financial Officer
    (403) 521-6302
    Website: www.pegasusoilgas.com