Regal Energy Ltd.
TSX VENTURE : REG

Regal Energy Ltd.

June 14, 2007 18:41 ET

Regal Energy Announces Additional Private Placement Financing

CALGARY, ALBERTA--(Marketwire - June 14, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Regal Energy Ltd. ("Regal") (TSX VENTURE:REG) is pleased to announce that, further to its proposed private placement to issue up to 7,000,000 common shares of Regal issued on a "flow-through" basis at $0.30 per share (the "Flow-Through Shares") announced on June 4, 2007, Regal intends to complete an additional financing. The additional financing involves a proposed private placement of up to 3,850,000 units of Regal (the "Units") at a price of $0.26 per Unit, for gross proceeds of $1,001,000 (the "Offering"). Each Unit will consist of one common share and one share purchase warrant to purchase one common share of Regal at a price of $0.35 per share for a period of two years. Regal intends to pay a finder's fee of 6% in connection with the Offering. Closing of the Offering, as well as the previously announced private placement of Flow-Through Shares, is expected to occur on or about June 28, 2007 (the "Closing"). Closing is conditional upon receipt of all necessary regulatory and stock exchange approvals and completion of due diligence. The securities issued pursuant to the Offering will be subject to a hold period of four months from the date of Closing.

The expected gross proceeds of $1,001,000 from the Offering will be used for general working capital purposes.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities 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 or to a U.S. person, absent registration, or an applicable exemption therefrom.

ADVISORY REGARDING FORWARD LOOKING STATEMENTS

Certain information regarding Regal set forth in this news release, including management's assessment of the Company's future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing, and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Issued and Outstanding Common Shares: 37,287,590

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

Contact Information

  • Regal Energy Ltd.
    Douglas O. McNichol
    President and Chief Executive Officer
    (403) 509-2581
    Email: dmcnichol@regalenergy.ca
    or
    Regal Energy Ltd.
    Wayne R. Wilson
    Vice President Finance and Chief Financial Officer
    (403) 509-2584
    Email: wwilson@regalenergy.ca
    or
    Regal Energy Ltd.
    Suite 1520, Life Plaza
    734 - 7th Avenue S.W.
    Calgary, Alberta T2P 3P8