RedWater Energy Corp.
TSX VENTURE : RED

RedWater Energy Corp.

November 08, 2010 09:30 ET

RedWater Energy Corp. Closes Initial Public Offering

OKOTOKS, ALBERTA--(Marketwire - Nov. 8, 2010) -

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RedWater Energy Corp. ("RedWater") (TSX VENTURE:RED) is pleased to announce that it has closed its initial public offering ("IPO") of 6,042,250 units ("Unit") at a price of $0.40 per Unit for gross proceeds of $2,416,900. Each Unit consists of one common share and one-half warrant ("Warrant"). Each full Warrant entitles the holder to purchase, during a period of eighteen months from the date of the closing, one common share at an exercise price of $0.50 per share.

"This is an exciting time for RedWater. Management would like to thank all of our shareholders, operators and employees for their continued support of RedWater. We look forward to continuing to work with all of you over the coming months as we continue to grow our business and focus on delivering value to our shareholders" commented Gary Waters, President and Chief Executive Officer.

RedWater has received conditional approval from the TSX Venture Exchange for the listing of the Company's common shares under the symbol "RED".

RedWater plans to use the net proceeds from the IPO for exploration and development of its properties in Redwater, Red Earth, Westlock and Fairydell-Bon Accord and for general corporate purposes.

Union Securities Ltd. (the "Agent") acted as Agent for the IPO. RedWater paid cash commissions equal to 8% ($193,352) of the aggregate gross proceeds of the IPO, and issued compensation options to purchase that number of Units is equal to 10% (604,225) of the number of Units sold pursuant to the IPO, at a price of $0.40 per Unit exercisable within 24 months of the closing date (October 29, 2012).

As of October 29, 2010, RedWater has 20,032,478 common shares outstanding.

Business of RedWater Energy Corp.

RedWater Energy Corp. is a junior oil and gas exploration and development company. RedWater is engaged in the acquisition, enhancement and exploration of conventional oil and gas projects in Western Canada with a focus on developing high working interest light oil opportunities. RedWater's core properties are located in Redwater, Red Earth, Westlock, and Fairydell-Bon Accord areas of Alberta.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), accepts responsibility for the adequacy or accuracy of this release.

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