WestFire Energy Ltd.

WestFire Energy Ltd.

November 22, 2010 16:20 ET

WestFire Energy Ltd. Announces $7.5 Million Bought Deal Flow-Through Share Financing

CALGARY, ALBERTA--(Marketwire - Nov. 22, 2010) -


WestFire Energy Ltd. ("WestFire") (TSX:WFE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Scotia Capital Inc. and including Macquarie Capital Markets Canada Ltd. and Raymond James Ltd. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a "bought deal" basis, 895,000 common shares of WestFire issued on a "flow-through" basis (the "Flow-Through Shares") at a price of $8.40 per Flow-Through Share, for aggregate gross proceeds of approximately $7,518,000.

WestFire will use the proceeds from the sale of the Flow-Through Shares to incur eligible Canadian Exploration Expenses ("CEE") which will be renounced to subscribers effective on or before December 31, 2010.

Closing is anticipated to occur on December 9, 2010 (the "Closing Date"). Closing is conditional upon certain conditions including but not limited to the receipt of all necessary regulatory and third party approvals, including the approval of the Toronto Stock Exchange.

WestFire is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on the Toronto Stock Exchange under the trading symbol of "WFE."

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Reader Advisory

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to the use of proceeds of the offering, the renouncing of CEE, and the completion and closing date of the offering. The forward-looking statements are based on certain key expectations and assumptions made by WestFire, including assumptions concerning the timing of obtaining regulatory approvals and the state of the economy and the exploration and production business, which expectations and assumptions management of WestFire believes to be reasonable at this time. Although WestFire believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as WestFire can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the offering could be delayed if WestFire is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. Additionally, the intended use of the proceeds of the offering by WestFire may change if the board of directors of WestFire determines that it would be in the best interests of WestFire to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release are made as of the date hereof and WestFire undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • WestFire Energy Ltd.
    Lowell Jackson
    President and CEO
    (403) 718-3601
    (403) 261-9658 (FAX)
    WestFire Energy Ltd.
    Stephen Burtt
    Vice President Finance and CFO
    (403) 718-3603
    (403) 261-9658 (FAX)