Valkyries Petroleum Corp.
TSX VENTURE : VPC

Valkyries Petroleum Corp.

August 10, 2005 16:07 ET

Valkyries Petroleum Announces Increase in Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Valkyries Petroleum Corp. (TSX VENTURE:VPC) ("Valkyries" or "the Company") reports that it has agreed to increase the recently announced non-brokered private placement by one million shares for a total aggregate of up to 11 million common shares of the Company at a price of Cdn $6.00 per share for gross proceeds of Cdn $66 million.

Net proceeds of the private placement will be used to repay the US $50 million bridge loan obtained by the Company to fund the acquisition of a 70% interest in the Lagansky exploration block as well as for general corporate purposes (please see news release dated July 22, 2005). The Company may pay a finders' fee of 5% on a portion of the private placement. The private placement is subject to regulatory approval.

The Lagansky Block is located offshore in the Russian sector of the Caspian Sea directly adjacent to the producing Caspian Field project operated by the Company onshore Kalmykia. The Lagansky Block is 2,000 square kilometres (494,000 acres) in size and is within the Central Caspian Basin which contains some of the largest oil and gas accumulations in the world.

Valkyries Petroleum Corp. is an upstream oil and gas company with exploration and producing interests in Russia and the United States and is currently in advanced stages of evaluation and negotiation on several projects in Russia.

ON BEHALF OF THE BOARD

Keith C. Hill, President


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

Contact Information

  • Valkyries Petroleum Corp.
    Sophia Shane
    Corporate Development
    (604) 689-7842
    (604) 689-4250 (FAX)
    www.valpete.com