West Energy Ltd.

West Energy Ltd.

October 20, 2006 08:19 ET

West Energy Ltd. Announces "Bought Deal" Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2006) -

Not for distribution to United States newswire services or dissemination in the United States.

West Energy Ltd. ("West") (TSX:WTL) is pleased to announce that it has entered into an agreement to sell to a syndicate of underwriters, on a "bought deal" basis, 3,000,000 common shares on a flow-through basis at a price of $7.25 per common share for gross proceeds of $21.8 million. The syndicate is led by GMP Securities L.P. and also includes FirstEnergy Capital Corp., Tristone Capital Inc. and Canaccord Adams Corp. The Company has also granted the underwriters an over-allotment option to purchase up to an additional 450,000 common shares on a flow-through basis at the same price per common share for additional gross proceeds of up to $3.2 million, such option to be exercisable for a period expiring 30 days following closing. The offering will be made in the provinces of Canada excluding Quebec, Prince Edward Island and New Brunswick, by way of short form prospectus. Closing is subject to receipt of regulatory approvals and is anticipated to close on or about November 15, 2006.

The proceeds from the financing will be used for the Company's ongoing exploration program.

West currently has approximately 60.1 million shares outstanding and will have 63.1 million shares outstanding after closing of the financing, 63.5 million shares assuming that the underwriters' over-allotment option is exercised in full.

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

Reader's Advisory:

Certain information regarding West Energy Ltd. in this news release including management's assessment of the future plans and operations and their timing may constitute forwarding-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information and that could cause actual results to differ materially from those anticipated in the forward-looking statements are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Corporation's website (www.westenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information

  • West Energy Ltd.
    Ken McCagherty
    President and Chief Executive Officer
    (403) 716-3458
    Email: McCagherty@westenergy.ca
    West Energy Ltd.
    Rick Jaggard
    Vice-President, Finance and Chief Financial Officer
    (403) 716-3457
    (403) 263-7007 (FAX)
    Email: rjaggard@westenergy.ca
    West Energy Ltd.
    600, 333 5th Avenue S.W.
    Calgary, Alberta, T2P 3B6
    (403) 265-5202
    (403) 263-7007 (FAX)