West Isle Energy Inc.

March 06, 2012 18:23 ET

West Isle Announces a Private Placement of Flow-through and Common Shares

CALGARY, ALBERTA--(Marketwire - March 6, 2012) -


West Isle Energy Inc. ("West Isle") (CNSX:WEI) announces that the Company is offering a Private Placement of Flow Through and common shares. The offering consists of; A) $150,000 consisting of 1,000,000 Flow-Through Common Shares at $0.15 per shares and B) $240,000 consisting of 2,000,000 Common Shares at $0.12 per share.

Issue Details: The closing of the issue will be March 31 2012 or any other such time the company may deem appropriate.

Flow Through use of Funds

Funds will be used to finance up to two Evi Slave Point Oil wells, Wells numbered 11 and 12 in the Evi program Development. These wells have been delayed to the coming winter season and are scheduled to be drilled over the fall/winter 2012/2013.

Evi oil drilling, if successful, will substantially increase the company's cash flow and revenue for the 2012/2013 production years.

Provost Alberta: West Isle has a 30% working interest in a shut in oil well that needs a work-over and some expenses may be incurred on the Provost project. The well is currently shut in but produced at 7 bopd in early 2011. A Recent engineering review has identified the production problems with the oil well and has provided a solution to fix those problems. West Isle also owns a 30% WI in drilled but not completed water disposal well in Provost. The completion of this well would greatly enhance our oil production in the area. The injection well would provide west Isle an outside source of revenue income from third parties using its water disposal facility.

Non Flow-through use of Funds:

Funds will be used for the work in Colombia with respect but not limited to evaluation, marketing and fundraising with the Fenix block Farm-in** and to free up funds for ongoing operations within West Isle.

Colombia: West Isle continues to evaluate and plan for the development of its Colombian Prospect while it seeks out financing to complete the first phases of exploration and development.

**There is no guarantee the company will be successful in financing the Colombian venture and may end up losing the opportunity to participate in the evaluation and development of the block.

Drayton Valley Alberta; West Isle has a shut in gas well at 5- 30-48-8w5m which it plans to equip with a small rental compressor in early 2012. This well also contains a yet to-be-completed gas zone on logs. Adding compression would enhance the Company's production in Drayton Valley; maintain its leases in good standing and maintain the Company's cash flow. Low gas prices may preclude this operation from proceeding.

Non Flow Through funds will also be used for completion and equipping of the EVI wells, work-overs on existing oil wells and or for the general account of West isle. With falling gas prices West Isle intends to use the funds to enhance its exiting production and to add additional oil production. However, there are no guarantees that the Company will be able to accomplish these goals.

For more information about West Isle visit the Corporation's website www.westisleenergy.com or the Listings Disclosure Hall at www.cnsx.ca or on SEDAR at www.sedar.com.

This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, which address future activities including the closing of the financing, exploration drilling and activity, and events or developments that the Corporation intends, plans, anticipates, believes, estimates or expects are forward looking statements. Actual results may differ materially. Although the Corporation believes such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market conditions and difficulties of raising funds in this economic environment, availability and costing of exploration contractors; exploration success; continued availability of capital government regulations, laws and charges; environmental developments; exploitation economics; and generally the economic, market, financial and business conditions in the present volatile and uncertain economic period. Investors are cautioned that any statements are not guarantees of future performance and actual results or developments may differ materially from those stated in the forward looking statements. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by West Isle Energy Inc. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

Trading symbol: WEI on the CNSX.

The CNSX Exchange accepts no responsibility for the adequacy or accuracy of this release.

Contact Information

  • West Isle Energy Inc.
    Robert D. McLeay
    (403) 263 1977 or Cell: (403) 585-2479
    (403) 270 1877 (FAX)

    West Isle Energy Inc.
    Kim Wojcinski
    VP Corporate Development
    (253) 581 7803