TriOil Resources Ltd.
TSX VENTURE : TOL

TriOil Resources Ltd.

November 10, 2011 08:19 ET

TriOil Announces $15 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TriOil Resources Ltd. ("TriOil" or the "Company") (TSX VENTURE:TOL) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P., and including Canaccord Genuity Corp., Haywood Securities Inc., and Dundee Securities Ltd. (collectively the "Underwriters"), which have agreed to purchase, on a bought deal basis, 7,143,000 common shares of TriOil (the "Common Shares") at a price of $2.10 per Common Share, for aggregate gross proceeds of $15,000,300.

In addition, the Underwriters have been granted an option (the "Over-Allotment Option") to purchase up to an additional 1,071,450 Common Shares to cover over-allotment, if any, at a price of $2.10 per Common Share for gross proceeds of $2,250,045. If the Over-Allotment Option is fully exercised, gross proceeds from the offering will be $17,250,345. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the offering.

TriOil will use the net proceeds to expand and accelerate its Cardium light oil drilling program at Lochend, Alberta following the recently announced successful Cardium oil wells and expanded inventory of higher impact Cardium oil locations, as well as for general corporate purposes.

On November 6, TriOil announced a successful Cardium light oil well at Lochend flowing at 1,320 boe/d (TriOil has a 20% W.I. in this well) and an expanded inventory of higher impact Cardium locations. The well flowed hydrocarbons over an extended 6 day test period at an average rate of 1,180 barrels per day of oil and 0.85 mmcf of natural gas per day, for a total average rate of 1,320 barrels of oil equivalent per day, with a water cut of 5 percent and a final flowing wellhead tubing pressure of approximately 1,300 kPa. TriOil owns a 20 percent interest in this well and expects it to be on production in late November.

On October 25, TriOil announced a light oil discovery in a new core area flowing at 1,870 boe/d (TriOil has 30% in this well) and another successful Lochend well flowing at 784 boe/d (TriOil has 50% in this well). The new core area light oil discovery well was completed with an 18 stage, water-based foam fluid system and flowed hydrocarbons over a 68 hour period at an average rate of 1,630 barrels per day of oil and 1.4 mmcf of natural gas per day, for a total of 1,870 barrels of oil equivalent per day, with a water cut of 1% and a final flowing wellhead tubing pressure of 2,000 kPa. The successful Lochend horizontal well flowed hydrocarbons over a 101 hour period at an average rate of 593 barrels per day of oil and 1.1 mmcf of natural gas per day, for a total average of 784 barrels of oil equivalent per day, with a water cut of 5% and a final flowing wellhead tubing pressure of 2,750 kPa.

TriOil Resources Ltd. is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. TriOil has approximately 31.3 million common shares issued and outstanding (35.4 million fully diluted). The common shares of TriOil trade on the TSX Venture Exchange under the symbol TOL.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

This document contains forward-looking statements. More particularly, this document contains statements which include, but are not limited to, the timing of closing of the offering, the anticipated use of proceeds and the receipt of the required regulatory and third party approvals.

The forward-looking statements are based on certain key expectations and assumptions made by TriOil. Although TriOil believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because TriOil can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release, the closing of the offering could be delayed if TriOil is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned and the offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by TriOil might change if the board of directors of TriOil determines that it would be in the best interests of TriOil to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and TriOil undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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

  • TriOil Resources Ltd.
    Russell J. Tripp
    President & CEO
    (403) 781-2771