Traverse Energy Ltd.
TSX VENTURE : TVL

December 02, 2010 17:40 ET

Traverse Energy Ltd. Closes Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Dec. 2, 2010) - Traverse Energy Ltd. (the "Corporation") (TSX VENTURE:TVL) is pleased to announce that it has successfully completed its previously announced non-brokered private placement (the "Private Placement") of 2.5 million common shares of the Corporation ("Shares") issued on a "flow through" basis within the meaning of the Income Tax Act (Canada) at $0.95 per share for total gross proceeds of $2,375,000.

The Corporation received conditional approval of the Private Placement from the TSX Venture Exchange on November 26, 2010. The Shares are subject to a hold period under applicable securities laws until April 3, 2011.

Current insiders of the Corporation participated in the Private Placement and purchased an aggregate of 233,300 Shares, or 9% of the Private Placement.

The Corporation paid an aggregate finder's fee of $31,455 to a registered broker in consideration for placing 662,200 Shares under the Private Placement, and an aggregate finder's fee of $23,465 to a second registered broker in consideration for placing 494,000 Shares under the Private Placement.

The Corporation intends to use the proceeds from the Private Placement to fund a portion of its exploration drilling activities in the province of Alberta.

About the Corporation

The Corporation is a junior oil and natural gas exploration and production company. The Corporation's management will continue to evaluate drilling and acquisition opportunities within Canada. The Common Shares of the Corporation currently are listed on the TSX Venture Exchange under the trading symbol "TVL". There are currently 31,853,333 Common Shares issued and outstanding.

Forward-Looking Information

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the Corporation's use of proceeds from the Private Placement. The intended use of proceeds might change if the board of directors of the Corporation determines that it would be in the best interests of the Corporation to deploy the proceeds for some other purpose. Undue reliance should not be placed on such forward-looking information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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

Contact Information

  • Traverse Energy Ltd.
    Laurie Smith
    President and Chief Executive Officer
    (403) 264-9223
    or
    Traverse Energy Ltd.
    800, 839 – 5th Avenue S.W.
    Calgary, Alberta T2P 3C8