TUSK Energy Corporation

TUSK Energy Corporation

November 15, 2005 09:21 ET

TUSK Announces $24.5 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2005) - TUSK Energy Corporation ("TUSK")(TSX:TSK) announces that it has entered into an agreement with Orion Securities Inc., as lead underwriter of a syndicate of underwriters including Westwind Partners Inc., Canaccord Capital Corporation, Acumen Capital Partners, and Brant Securities Ltd. under which the syndicate has agreed to purchase, on a "bought-deal" basis, by way of private placement, at total of $24,551,250 in Special Warrants. The issue will comprise 3,100,000 Class A Special Warrants at an issue price of $4.05 each for total proceeds of $12,555,000 and 2,285,000 Class B Special Warrants, to be issued on a flow-through basis, at an issue price of $5.25 each for total proceeds of $11,996,250. The aggregate proceeds from the sale of the Class A and Class B Special Warrants will be $24,551,250.

Each Class A Special Warrant will entitle the holder to acquire one common share of TUSK at no additional cost and each Class B Special Warrant will entitle the holder to acquire one flow-through common share of TUSK at no additional cost.

TUSK will file a prospectus qualifying the distribution of the common shares underlying the Special Warrants in the applicable jurisdictions in Canada. The financing is expected to close on or about November 30, 2005 and is subject to regulatory approval. Proceeds from the financing will be used to fund the Company's ongoing exploration and development programs.

Forward Looking Statements - Some of the statements contained in this news release are forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information of TUSK, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although TUSK believes that its expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors, which could cause actual results to differ from these forward-looking statements, include the potential that TUSK's projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated by TUSK or disclosed in TUSK's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Contact Information

  • TUSK Energy Corporation
    Norman W. Holton
    Chairman & Chief Executive Officer
    (403) 264-8875
    (403) 264-8861 (FAX)