SOURCE: Petro Resources Corporation

November 21, 2005 13:12 ET

Petro Resources Corporation Completes $5.2 Million Private Placement

HOUSTON, TX -- (MARKET WIRE) -- November 21, 2005 -- Petro Resources Corporation (OTC: PRCT), an independent exploration and production company, announces today that the company has completed the sale of common stock and warrants to certain institutional and accredited investors for gross proceeds of $5,200,000. Proceeds are expected to be used for lease acquisition, drilling and development of oil and natural gas properties, and general working capital.

The Company announced that it sold a total of 5,200,000 units, at $1.00 per unit, with each unit consisting of one share of common stock and one warrant to purchase one share of common stock, over a five year period, at an exercise price of $2.00 per share. The exercise price of the warrants is not subject to adjustment, except for standard anti-dilution relating stock splits, combinations and the like. The Company has agreed to file a registration statement to register the shares of common stock made part of the units, including the shares underlying the warrants.

Energy Capital Solutions, LP of Dallas, Texas, represented the Company as placement agent to the institutional market.

"The completion of this financing marks a few important milestones for Petro Resources," remarked Wayne Hall, the Company's CEO. "The capital will allow us to pursue our lease acquisition and exploratory and development drilling programs. In addition, we also expect to file a selling stockholder registration statement with the SEC in January 2006, at which time we will become fully reporting to the SEC and file an application to list our common shares on the OTCBB."

About Petro Resources Corporation:

Petro Resources Corporation is an independent exploration and production company focused on domestic oil and gas drilling and production.

Forward Looking Statements:

The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding the Company's expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) expected revenue and earnings growth; (2) estimates regarding the size of pre-drill reserve potential; (3) estimates regarding the size of post-drill reserve potential; (4) regulation of the Company's industries and markets. These statements are qualified by important factors that could cause the Company's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company's ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the company, and (2) the Company's ability to obtain working capital as and when needed. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contact Information

  • Contact:
    Petro Resources Corporation
    Wayne Hall
    (713) 968-9282