Regal Energy Ltd.

Regal Energy Ltd.

June 30, 2005 14:18 ET

Regal Energy Announces Closing of Flow-Through Financing and Operations Update

CALGARY, ALBERTA--(CCNMatthews - June 30, 2005) - Regal Energy Corp. (TSX VENTURE:RGN) ("Regal" or the "Company") is pleased to announce the closing of its flow-through financing and an update of its drilling and completion activity.

Flow-Through Financing

Regal has closed its previously announced private placement of Flow-Through Common Shares (the "Offering") brokered by Jennings Capital Inc. (the "Agent"). An aggregate of 3,889,668 Flow-Through Common Shares were issued at a price of $0.24 each for gross proceeds of $933,520, an increase from the previously announced total of $750,000. The Agent received a commission of 6% of the gross proceeds of the Offering. Regal has also closed its private placement with officers, directors and employees of the Company and has issued an aggregate of 653,000 Flow-through Common Shares at a price of $0.24 each for gross proceeds of $156,720.

As a result of the private placements a total number of 4,542,668 Flow-Through Common Shares were issued by the Company. The common shares issued will be subject to a hold period of four months. Regal presently has 29,749,841 issued and outstanding common shares. Total gross proceeds of $1,090,240 from the financing will be used for the Company's on-going exploration and development activities.

Operations Update

Regal has drilled and cased a potential oil well at Atlee Buffalo, Alberta. The Company expects the well will be completed and evaluated for oil production within the next two weeks. Regal has also completed an oil well under a previously announced farmin agreement at Atlee Buffalo. The well has been equipped and is expected to commence production within one week. The Company has earned a 100 percent interest in a quarter section, subject to a convertible overriding royalty until payout, at which time its interest will revert to 50 percent and a 50 percent interest in the remaining three quarters of the section. The development of this new pool discovery will depend on the production performance of the new well and additional seismic that is planned for the property.

Regal Energy Corp. is a Canadian energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas with a focus on growth and profitability.

ADVISORY - Certain information regarding Regal set forth in this release, including management's assessment of the Company's future plans and operations, 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: 29,749,841

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

Contact Information

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