Stylus Energy Inc.

December 06, 2006 12:02 ET

Stylus Energy Inc. Announces Increase to Private Placement Financing

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

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

Stylus Energy Inc. ("Stylus" or the "Company) (TSX:STY) is pleased to announce that it reached an agreement with Sprott Securities Inc. and Acumen Capital Finance Partners Limited to increase the size of the offering announced earlier today to 1,341,500 common shares issued on a "flow-through" basis (the "Flow-Through Shares") for gross proceeds of approximately $5.5 million.

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".

This offering will be made available in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba, and Ontario.

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

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
    Stylus Energy Inc.
    William Dyer
    Vice-President, Finance and Chief Financial Officer
    (403) 517-8790