RedStar Oil & Gas Inc.
TSX VENTURE : RED
TSX VENTURE : RED.NV

RedStar Oil & Gas Inc.

October 28, 2005 18:28 ET

RedStar Oil & Gas Inc. Announces Increase to Previously Announced Equity Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 28, 2005) -

Not for distribution to U.S. newswire services or for dissemination in the United States of America.

RedStar Oil & Gas Inc. ("RedStar") (TSX VENTURE:RED) (TSX VENTURE:RED.NV) is pleased to announce that it has increased its previously announced "bought-deal" financing agreement with a syndicate of underwriters led by GMP Securities Ltd. and including, Blackmont Capital Inc., Canaccord Capital Corporation, Orion Securities Inc., Raymond James Ltd., Acumen Capital Finance Partners Limited and Jennings Capital Inc. (the "Underwriters") such that RedStar will now issue 4,481,400 special warrants ("Special Warrants") at a price of $2.70 per Special Warrant and 8,787,800 flow-through special warrants ("Flow-Through Warrants") at a price of $3.30 per Flow-Through Warrant for gross proceeds of approximately $41,000,000.

Proceeds of the offering will be used to expand RedStar's 2005 and 2006 capital spending program and for general corporate purposes.

RedStar Oil & Gas Inc. is a junior oil and gas company engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin.

Cautionary Statements

Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond this party's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. RedStar disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

  • RedStar Oil & Gas Inc.
    Chester J.R. Krala
    President
    (403) 262-3130
    or
    RedStar Oil & Gas Inc.
    William Gallacher
    Chairman
    (403) 237-9949
    (403) 239-0621 (FAX)