TUSK Energy Corporation

TUSK Energy Corporation

March 14, 2005 17:14 ET

Tusk Closes $31.5 Million Bought Deal Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TUSK ENERGY CORPORATION

TSX SYMBOL: TSK

MARCH 14, 2005 - 17:14 ET

Tusk Closes $31.5 Million Bought Deal Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 14, 2005) -

Not for dissemination to United States Newswire Services or
dissemination in the United States

TUSK Energy Corporation (TSX:TSK) ("TUSK") is pleased to announce that
it has completed the "bought deal" private placement originally
announced on February 24, 2005. The syndicate of underwriters was led by
Orion Securities Inc. and included Canaccord Capital Corporation,
Raymond James Ltd. and Brant Securities Limited. TUSK issued 7,000,000
common shares at $4.50 for total gross proceeds of $31,500,000.

The net proceeds received by the Company from the offering of common
shares will be used for working capital and/or expanded capital
expenditures. The total number of common shares issued and outstanding
as of the date hereof, after giving effect to the offering, is
35,030,371.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TUSK Energy Corporation
    Norman W. Holton
    Chairman
    (403) 264-8875
    or
    TUSK Energy Corporation
    Gordon K. Case
    Vice President, Finance & Chief Financial Officer
    (403) 264-8875