NEWS
RELEASE
October 17, 2007
PEARL CLOSES CDN $110 MILLION
PRIVATE PLACEMENT
CALGARY, ALBERTA - Pearl Exploration and
Production Ltd.
("Pearl"
or “the Company”) (TSX Venture: PXX and First North: PXXS) is
pleased to announce that it has closed the private placement as announced on
October 4, 2007. The Company
sold, on a bought-deal, private placement basis, an aggregate of 29,400,000
common shares of the Company at a price of Cdn $3.75
per share for gross proceeds of Cdn $110,250,000.
The placement of the common shares was
underwritten and led by GMP Securities L.P. and included Canaccord
Adams Limited. Net proceeds of the private placement will be used
to fund the recently announced acquisition of heavy oil assets from PetroHunter Energy Corporation and the Company’s
ongoing development programs as well as for general working capital
purposes. The private placement has received conditional regulatory
approval and the common shares have been issued to the investors. The
common shares issued pursuant to the private placement are subject to a 4 month
hold period expiring February 18, 2008.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy any securities of Pearl within the United States. The securities of Pearl have not been and
will not be registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), or any state securities laws. Accordingly,
the shares may not be offered or sold in the United
States or to U.S. persons (as such terms are defined
in Regulation S under the 1933 Act) unless registered under 1933 Act and
applicable state securities laws or an exemption from such registration is
available.
Pearl Exploration and Production Ltd. is a
public company focused on delivering disciplined growth by establishing a North
American portfolio of heavy oil projects with an emphasis on large resource
opportunities. Additional information on Pearl is available on the Company’s
website at www.pearleandp.com.
Forward-looking statements: This
document contains statements about expected or anticipated future events and
financial results that are forward-looking in nature and as a result, are
subject to certain risks and uncertainties, such as general economic, market
and business conditions, the regulatory process and actions, technical issues,
new legislation, competitive and general economic factors and conditions, the
uncertainties resulting from potential delays or changes in plans, the
occurrence of unexpected events, and the Company’s capability to execute
and implement its future plans. Actual results may differ materially from
those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning
of the Private Securities Legislation Reform Act of 1995.
Pearl’s Certified
Advisor on First North is E.
�hman J:or Fondkommission AB.
For further information, please
contact:
Keith Hill - President and
Chief Executive Officer
Tel.:
(604) 689-7842
E-mail:
khill@namdo.com
|
Randy Neely – Chief
Financial Officer
Tel: (403) 716-4054
E-mail: randy.neely@pxx.ca
|
Sophia Shane – Corporate
Development
Tel:
(604) 806-3575
E-mail:
sophias@namdo.com
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The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or accuracy of
this release.