Regal Energy Ltd.

Regal Energy Ltd.

June 16, 2005 11:51 ET

Regal Energy Announces Flow-Through Financing and Commencement of Drilling Operations at Atlee Buffalo

CALGARY, ALBERTA--(CCNMatthews - June 16, 2005) - Regal Energy Corp. (TSX VENTURE:RGN) ("Regal" or the "Company") is pleased to announce it is proceeding with a Flow-Through Common Share financing led by Jennings Capital Inc. The Company will issue up to 3,125,000 Flow-Through Common Shares priced at $0.24 each for total gross proceeds of $750,000. The private placement is expected to close on or about June 30, 2005 and is subject to exchange and regulatory approval and completion of definitive documents. The proceeds of the private placement will be used for exploration and development drilling activities in the Company's ongoing exploration and development program. Concurrently with the private placement, the Company intends to issue up to 1,041,667 Flow-Through Common Shares at a price of $0.24 each to officers, directors and employees of the Company for additional proceeds of $250,000.

Regal is pleased to announce it expects to commence drilling its first development well in the Atlee Buffalo, Alberta within the next week, weather permitting. Regal will hold a 60 percent interest in the well located at 105/6-31-21-4 W4M.

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: 25,207,173

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