Spitfire Energy Ltd.
TSX VENTURE : SEL

Spitfire Energy Ltd.

August 31, 2007 09:15 ET

Spitfire Energy Closes $4 Million Financing

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2007) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

SPITFIRE ENERGY LTD. ("Spitfire" or the "Corporation") (TSX VENTURE:SEL) announces that it has closed the third, and final, of its previously announced financings.

At the Corporation's Annual and Special meeting held August 28, 2007, shareholders approved the non-brokered financing to HKN Inc., resulting in the creation of a new "control person."

Spitfire closed the $4,000,000 financing on August 29, 2007, issuing 8,000,000 common shares at $0.50 per share. The common shares issued are subject to a four-month hold period expiring December 30, 2007.

In addition, relating to the financing, shareholders approved the extension of the expiry date of the 1,300,000 share purchase warrants held by HKN, Inc. to August 1, 2010. The Corporation has agreed to allow HKN Inc. to participate in future financings on a pro rata basis.

Subsequent to the closing of the above mentioned financing, the Corporation has a total of 42,943,244 shares issued and outstanding, of which HKN, Inc. owns 25.4%

Spitfire Energy Ltd. is a junior oil and gas company engaged in the exploration for, development, and production of natural gas and crude oil reserves. The proceeds will be used to finance Spitfires' exploration and development program. Spitfire's common shares trade on the TSX Venture Exchange under the symbol "SEL".

This press release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents of this press release.

Contact Information

  • Spitfire Energy Ltd.
    Danny W. Zivkusic
    Chief Financial Officer
    (403) 205-3400 x 228