Stonefire Energy Corp.
TSX VENTURE : SFE.A
TSX VENTURE : SFE.B

Stonefire Energy Corp.

October 11, 2006 08:56 ET

Stonefire Energy Corp. Announces $5.0 Million Bought Deal Flow Through Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States.

Stonefire Energy Corp. (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) ("Stonefire" or the "Company") is pleased to announce today that it has entered into a bought deal financing agreement to issue 2,100,000 flow through Class A shares on a private placement basis at a price of $2.40 per share, resulting in gross proceeds of $5,040,000. The underwriting syndicate is led by Tristone Capital Inc. and includes Canaccord Capital Corporation, Haywood Securities Inc., and Raymond James Ltd.

Proceeds from the offering will be used to fund the Company's ongoing exploration drilling program in the Edson exploration area.

Closing of the offering is expected to occur on or about November 2, 2006, and is subject to the receipt of all requisite regulatory and stock exchange approvals. The flow through shares are subject to a four month hold period from the date of closing of the private placement.

Stonefire Energy Corp. is an Alberta-based company formed to participate in oil and gas exploration, development and acquisitions focusing in the West Central region of Alberta.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward Looking Statements: This document 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 TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

  • Stonefire Energy Corp.
    Mr. Richard Dahl
    President & Chief Executive Officer
    (403) 262-9885 ext 222
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President Finance and CFO
    (403) 262-9885 ext 228
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Suite 320, 333 - 5th Avenue SW
    Calgary, Alberta T2P 3B6