Storm Cat Energy Corporation
TSX VENTURE : SME

Storm Cat Energy Corporation

August 22, 2005 09:01 ET

Storm Cat Announces $6 Million Private Placement of Units and Flow-Through Common Shares

CALGARY, ALBERTA and DENVER, COLORADO--(CCNMatthews - Aug. 22, 2005) - Storm Cat Energy Corp. (TSX VENTURE:SME) (the "Company") announces private equity financing.

Storm Cat Energy has entered into an agreement with Northern Securities, Inc. as lead agent for a Private Placement of up to 1,250,000 units ($3,000,000 CDN) and 1,071,429 flow-through common shares ($3,000,000 CDN) (the "Offering"). Each unit, priced at $2.40 per unit, comprises one common share and one-half common share purchase warrant. Each whole common share purchase warrant is exercisable into one common share at a price of $3.00 for a period of 18 months from closing. Each flow-through common share is priced at $2.80 per share.

The Corporation also grants the agent an over-allotment option of up to 25% of the number of units and flow-through common shares issued under the Offering at the issue price. The over-allotment option may be exercised within thirty (30) days of closing.

The net proceeds from the sale of the units will be used to further the Corporation's exploration and development program in the Powder River Basin, Wyoming and for general corporate purposes. The net proceeds from the sale of flow-through common shares will be used to incur exploration and development expenses which qualify as CEE under the Income Tax Act (Canada).

By Order of the Board of Directors

Storm Cat Energy Corporation

J. Scott Zimmerman, President and Chief Executive Officer

CAUTIONARY STATEMENT: This publication contains certain "forward looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995. Such statements are based on the Company's current expectations, estimates and projections about the industry, management's beliefs and certain assumptions made by it; and involve a number of risks and uncertainties including but not limited to economic, competitive, governmental and geological factors effecting the Company's operations, markets, products and prices and other risk factors. Words such as "anticipates", "expects", "intends", "plans", "believes" or similar expressions are intended to identify forward-looking statements. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the Company's need for and availability of additional financing, and the other risk factors discussed in greater detail in the Company's various filings with the Securities and Exchange Commission and Canadian securities regulators, including the Company's Form 20-F dated July 1, 2005.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Storm Cat Energy Corporation
    Scott Zimmerman
    President and Chief Executive Officer
    87-STORMCAT (877-867-6228)
    or
    Storm Cat Energy Corporation
    Paul Wiesner
    Chief Financial Officer
    87-STORMCAT (877-867-6228)
    www.stormcatenergy.com