Spartan Oil Corp.
TSX : STO

Spartan Oil Corp.

December 08, 2011 09:15 ET

Spartan Oil Corp. Announces Closing of Previously Announced Financing

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OF FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Spartan Oil Corp. ("Spartan" or the "Company") (TSX:STO) is pleased to announce completion of the previously announced bought deal financing of 10,268,350 common shares of the Company ("Common Shares") at an issue price of $2.80 per Common Share, including 1,339,350 Common Shares pursuant to the fully exercised over-allotment option, with a syndicate of underwriters co-led by Clarus Securities Inc. and GMP Securities L.P., and including Peters & Co. Limited, AltaCorp Capital Inc., Jennings Capital Inc., Casimir Capital Ltd., Desjardins Securities Inc. and Octagon Capital Corporation for gross proceeds of $28,751,380 (the "Bought Deal Financing"). Contemporaneous with the closing of the Bought Deal Financing, the Corporation has completed the previously announced issuance of 781,250 Common Shares issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of $3.20 per Flow-Through Share for aggregate proceeds of $2,500,000 (the "Non-Brokered Financing").

Net proceeds of the Bought Deal Financing will be used to fund the Company's drilling operations and for general corporate purposes. Spartan intends to use the gross proceeds of the Non-Brokered Financing to fund ongoing exploration activities that will qualify as Canadian Exploration Expense, which will be renounced to subscribers effective for the 2011 taxation year.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The Common Shares have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

The Company is engaged in the business of acquiring crude oil and natural gas properties and exploring for, developing and producing oil and natural gas in western Canada. Spartan is uniquely positioned with a significant position in two of the leading oil resource plays in western Canada, being the Cardium light oil play in central Alberta and the Bakken light oil resource play in southeast Saskatchewan.

READER ADVISORY

This press release contains certain forwardlooking statements (forecasts) under applicable securities laws relating to future events or future performance. Forwardlooking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forwardlooking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Spartan. Undue reliance should not be placed on these forwardlooking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forwardlooking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Spartan Oil Corp.
    Richard F. McHardy
    President & CEO
    (403) 457-4006
    (403) 457-4028 (FAX)

    Spartan Oil Corp.
    Michelle A. Wiggins
    Vice President Finance & CFO
    (403) 457-4006
    (403) 457-4028 (FAX)
    info@spartanoil.ca
    www.spartanoil.ca