PetroWorth Resources Inc.

PetroWorth Resources Inc.

October 12, 2005 17:21 ET

PetroWorth Resources Inc. Announces Closing of $5,589,899 Million Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Oct. 12, 2005) - PetroWorth Resources Inc. (TSX VENTURE:PTW)("PetroWorth") is pleased to announce that it has successfully completed its initial public offering ("IPO"). PetroWorth received gross proceeds from the offering of $5,589,899. The IPO was comprised of the issuance of 1,713,166 Common Shares of PetroWorth, issued as "flow- through shares" ("FT Shares"), and 2,013,166 units ("Units"). Each Unit consists of one common share of PetroWorth ("Common Share") and one common share purchase warrant of PetroWorth ("Warrant"). Each whole Warrant entitles the holder to acquire one additional Common Share for a period of eighteen months from the initial closing at a price of $1.75 per share for the first twelve months and at a price of $2.00 per share for the following six months.

Union Securities Ltd. ("Union"), acted as the lead agent in the sale of the FT Shares and Units and received a cash commission of $475,141.37 (equal to 8.5% of the gross proceeds) and also the selling Agents received non-transferable Agents Options to acquire 171,317 Common Shares and 201,343 Units (equal to 10% of the FT Shares and Units sold), at a price of $1.50 per common share or Unit within 18 months of issuance. The Corporation paid Union's legal fees and expenses in connection with the sale of the FT Shares and the Units, as well as a corporate finance fee of $25,000.00 plus GST.

The net proceeds from the IPO will be utilized by PetroWorth to fund its ongoing oil and gas exploration activities onshore in eastern Canada and for general working capital purposes.

Paul Sparks, President states: "Our initial focus will be on an aggressive exploration drilling program on our permitted properties on Prince Edward Island, where we recently completed one of the largest 3-D seismic programs ever conducted onshore in eastern Canada."

PetroWorth Chairman and CFO, Jim Trainor states: "The Board of PetroWorth is clearly delighted with the response to our IPO and excited about the planned exploration activities and PetroWorth's prospects."

PetroWorth's management team includes Paul Sparks (President and Director), Jim Trainor (CFO and Chairman), Khalid Amin (Vice President and Director), and independent directors, namely: Andy Burnett, Neal Mednick and Frank Sayer.

PetroWorth is a junior oil and gas company focused on the acquisition and exploration of oil and natural gas properties onshore in eastern Canada. The company has 100% exploration rights to nearly 375,000 ha of land on Prince Edward Island, Nova Scotia and New Brunswick.

ADVISORY: Certain information regarding PetroWorth, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involves risks associated with oil and gas exploration, volatility of prices, currency fluctuations, environmental risks, competition from other explorers and ability to access sufficient capital from external sources. As a consequence, actual results may vary materially from those anticipated in the forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • PetroWorth Resources Inc.
    Khalid Amin
    Vice President
    (403) 269-3000
    (403) 269-2100 (FAX)