Rock Energy Inc.

Rock Energy Inc.

November 16, 2010 09:21 ET

Rock Energy Inc. Announces Closing of $10.0 Million Bought Deal Flow-Through Financing

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2010) - Rock Energy Inc. ("Rock" or the "Company") (TSX:RE) is pleased to announce that it has closed its previously announced bought deal financing of 1,855,000 common shares issued on a "flow-through" basis ("Flow-Through Common Shares") at an issue price of $5.40 per Flow-Through Common Share for gross proceeds to Rock of $10,017,000 (the "Offering") through a syndicate of underwriters led by Cormark Securities Inc. and which included FirstEnergy Capital Corp., Mackie Research Capital Corporation, Wellington West Capital Markets Inc., Dundee Securities Corporation and Salman Partners Inc.

Proceeds of the Offering will be used to fund the Company's ongoing exploration activities to incur eligible Canadian Exploration Expenditures ("CEE") for purposes of the Income Tax Act (Canada) and such CEE will be renounced to subscribers of the Flow-Through Common Shares on or before December 31, 2010.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ADVISORY: This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to the use of proceeds of the Offering and the renouncing of Canadian exploration expenses. The forward-looking statements are based on certain key expectations and assumptions made by Rock, including assumptions concerning the state of the economy and the exploration and production business, which expectations and assumptions management of Rock believes to be reasonable at this time. Although Rock believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as Rock can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and Rock undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Rock Energy Inc.
    Allen J. Bey
    Chief Executive Officer
    (403) 218-4380
    Rock Energy Inc.
    John H. Van de Pol
    President & Chief Financial Officer
    (403) 218-4380