Welton Energy Corporation
TSX : WLT
TSX : WLT.WT
TSX : WLT.DB

Welton Energy Corporation

April 23, 2007 07:00 ET

Welton Energy Corporation Announces Equity Financing

CALGARY, ALBERTA--(CCNMatthews - April 23, 2007) -

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

Welton Energy Corporation ("Welton", "the Corporation") (TSX:WLT)(TSX:WLT.DB)(TSX:WLT.WT) is pleased to announce that it has entered into an equity financing arrangement with Acumen Capital Finance Partners Limited ("Acumen") on a "bought deal" basis. The Corporation will issue, on a private placement basis, 1,744,200 common shares on a "flow-through" basis eligible for Canadian Exploration Expenses (the "Flow-Through Shares") at a price of $0.86 per Flow-Through Share for total gross proceeds of $1,500,012. In addition, Acumen will have the option to place additional Flow-Through Shares, exercisable at any time prior to close of the offering, subject to certain conditions, such that the "bought-deal" amount, the option amount and the concurrent private placement described below do not exceed $5,000,000 (5,813,952 Flow-Through Shares).

Concurrently, and in addition to the "bought-deal" financing noted above, the Company has received commitments from management and insiders to participate in an additional private placement of a minimum of 1,162,790 common shares on a "flow-through" basis eligible for Canadian Exploration Expenses at a price of $0.86 per Flow-Through Share for total gross proceeds of $1,000,000.

Proceeds of the offering will be used to fund the Company's ongoing exploration program and to provide the Corporation with additional financial flexibility.

The common shares to be issued under this offering will be offered in the provinces of Alberta, British Columbia and Ontario on a private placement basis.

Closing of these offerings is expected to occur on or before May 10, 2007 and is subject to receipt of all necessary regulatory approvals.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration or an applicable exemption from the registration requirement.

Cautionary Statements

Certain information set forth in this document contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of the preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Welton's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Welton will derive therefrom. Welton disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. A boe conversion may be misleading, particularly if used in isolation, as it is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Welton Energy Corporation
    Donald A. Engle
    President
    (403) 215-4747
    or
    Welton Energy Corporation
    Shyla M. Stinson
    Vice President, Finance
    (403) 215-4750
    Website: www.weltonenergy.com