Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

September 09, 2010 08:00 ET

Suroco Energy Inc. Announces Proposed $10 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2010) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that it intends to issue, on a non-brokered private placement basis (the "Private Placement"), up to 22,222,222 common shares of the Corporation at a price of $0.45 per share for gross proceeds of up to approximately $10,000,000. The Private Placement is expected to close on or before September 17, 2010 or such other date or dates that the Corporation determines.

It is anticipated that the net proceeds of the Private Placement will be used by the Corporation for development and exploration drilling in Colombia and for general corporate purposes.

The Private Placement is subject to the approval of the TSX Venture Exchange, which may impose conditions in connection with its approval of the Private Placement. 

All securities issued in connection with the Private Placement will be subject to a four-month hold period.

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia and Western Canada. The Corporation's common shares trade on the TSX Venture Exchange under the symbol SRN.

Forward-Looking Statements

This press release contains forward-looking statements relating to the Private Placement and the use of funds from the Private Placement. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the risk that the Private Placement will not be completed, the failure to obtain the necessary regulatory approvals for the Private Placement and the state of the economy in general and capital markets in particular.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

This press release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer to buy, in the United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "1933 Act")) of any equity or other securities of the Corporation. The securities of the Corporation to be issued in connection with the proposed Private Placement have not been registered under the 1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Suroco Energy Inc.
    Alastair Hill
    President and Chief Executive Officer
    (403) 232-6784
    (403) 232-6747 (FAX)
    or
    Suroco Energy Inc.
    Travis Doupe
    Vice-President, Finance and Chief Financial Officer
    (403) 232-6784
    (403) 232-6747 (FAX)
    www.suroco.com