Stylus Energy Inc.
TSX : STY

December 06, 2006 08:31 ET

Stylus Energy Announces $5 Million Flow-Through Share Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 6, 2006) -

NOT FOR DISTRUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Stylus Energy Inc. ("Stylus" or the "Company") (TSX:STY) is pleased to announce that it has entered into a financing agreement with an underwriting syndicate led by Sprott Securities Inc. and including Acumen Capital Finance Partners Limited. Stylus will issue, on a private placement, bought deal basis 1,219,600 common shares issued on a "flow-through" basis (the "Flow-Through Shares") at a price of $4.10 per Flow-Through Share for total gross proceeds of approximately $5 million.

The private placement financing is scheduled to close on or about December 20, 2006 and is subject to customary conditions including regulatory approval.

Proceeds from the issuance of the Flow-Through Shares will be used to incur Canadian exploration expenses on continued exploration of Stylus' oil and natural gas properties prior to December 31, 2007 and will be renounced to subscribers of the Flow Through Shares effective December 31, 2006.
Stylus is a Calgary-based junior oil and natural gas company with operations in Alberta. The common shares of Stylus are listed on the Toronto Stock Exchange and trade under the symbol "STY".

Forward Looking Statements - Certain information regarding Stylus set forth in this document, including management's assessment of the Company's future plans and operations, the anticipated closing of the financing, the use of proceeds from the financing and renunciation of expenditures to subscribers, contain forward- looking statements that involve known and unknown risks and uncertainties including the anticipated closing of the financing and the use of proceeds from the financing. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control. Actual results could differ from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. The forward-looking statements contained herein are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information

  • Stylus Energy Inc.
    Paul Evans
    President and Chief Executive Officer
    (403) 517-8791
    Email: pevans@stylusenergy.com
    or
    Stylus Energy Inc.
    William Dyer
    Vice-President, Finance and Chief Financial Officer
    (403) 517-8790
    Email: bdyer@stylusenergy.com