Stonefire Energy Corp.

Stonefire Energy Corp.

November 02, 2006 11:35 ET

Stonefire Energy Corp. Announces Closing of $5.0 Million Flow Through Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 2, 2006) - Stonefire Energy Corp. (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) ("Stonefire" or the "Company") is pleased to announce that it has closed its previously announced bought deal for the issuance of 2,100,000 Class A shares issued on a "flow-through" basis at a price of $2.40 per share, resulting in gross proceeds of $5,040,000. The underwriting syndicate was led by Tristone Capital Inc. and included 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.

The flow through shares are subject to a hold period until March 3, 2007.

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. The Company's shares trade on the TSX Venture exchange under the symbols SFE.A and SFE.B. Subsequent to this issuance the Company has 11,850,000 Class A shares and 1,012,000 Class B shares outstanding.

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)
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President Finance and CFO
    (403) 262-9885 ext 228
    (403) 262-9887 (FAX)
    Stonefire Energy Corp.
    Suite 320, 333 - 5th Avenue SW
    Calgary, Alberta T2P 3B6