Regal Energy Ltd.
TSX VENTURE : REG

Regal Energy Ltd.

July 16, 2007 18:35 ET

Regal Energy Announces Closing of Private Placements

CALGARY, ALBERTA--(Marketwire - July 16, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA

Regal Energy Ltd. ("Regal" or the "Corporation") (TSX VENTURE:REG) is pleased to announce it has closed the remainder of its previously announced private placement of flow-through shares. An additional 3,765,800 common shares were issued on a "flow-through basis" at a price of $0.30 per share for gross proceeds of $1,129,740 bringing the total gross proceeds of the private placement to $2,100,000 (the "gross proceeds"). Acumen Capital Finance Partners Limited and Nova Bancorp Securities Ltd. acted as agents and received a cash commission of 7% of the gross proceeds. The additional common shares issued are subject to a hold period of four months expiring on November 17, 2007. Insiders of the Corporation subscribed for a total of 666,666 common shares for gross proceeds of $199,999.80.

Regal has also closed its previously announced additional private placement of 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 consists 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. A finder's fee of 6% in connection with the Offering was paid to Global Resource Investments Ltd. The securities issued pursuant to the Offering are subject to a hold period of four months expiring on November 17, 2007.

A total of $3,101,000 in gross proceeds raised through the private placements will be used to fund exploration and development of Regal's properties located in Alberta and British Columbia and for general working capital purposes. As a result of the issuance of additional shares, the Corporation presently has 48,137,590 shares outstanding.

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: 48,137,590

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