The Buffalo Oil Corporation
TSX VENTURE : BFO

The Buffalo Oil Corporation

November 21, 2006 07:36 ET

The Buffalo Oil Corporation Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2006) - The Buffalo Oil Corporation ("Buffalo")(TSX VENTURE:BFO) is pleased to announce that it has entered into a bought-deal financing agreement with a syndicate led by Research Capital Corporation and including Acumen Capital Partners (collectively the "Underwriters"), to complete a private placement of 550,000 common shares at a price of $1.80 per share and 910,000 "flow-through" common shares at a price of $2.20 per share for gross proceeds of approximately $3 million. The financing agreement also grants the Underwriters an option to purchase an additional 1,666,666 common shares, the option being exercisable at any time prior to the closing of the private placement.

The private placement will be substantially at arm's length, although certain Officers and Directors of Buffalo may participate. The common shares and flow-through common shares issued pursuant to the private placement will be subject to a four-month hold period from the date of the closing of the private placement, the closing anticipated to take place on or about December 4, 2006. The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.

Proceeds from the private placement will be used to fund Buffalo's ongoing capital expenditure program.

Buffalo is an emerging Canadian junior oil and gas company engaged in the exploration, development and production of oil and gas reserves in the provinces of Alberta and Saskatchewan.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • The Buffalo Oil Corporation
    Trevor Penford
    President and C.F.O.
    (403) 252-2462
    or
    The Buffalo Oil Corporation
    William (Bill) Trickett
    Chairman and C.E.O.
    (403) 252-2462
    or
    The Buffalo Oil Corporation
    Suite 180, 1209 - 59th Avenue S.E.
    Calgary, Alberta T2H 2P6
    (403) 252-2462
    (403) 252-1399 (FAX)
    Website: www.buffalo-oil.com