CALGARY, June 27 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced
today that it has closed the financing that was initiated on May 1, 2006 under
a Short Form Offering Document. Octagon Capital Corporation acted as agent for
the offering. Gross proceeds from the offering totalled $1,161,875 and after
deducting commissions, legal fees and other costs, net proceeds amounted to
$1,024,703. A total of 1,787,500 Units were sold at 65 cents each, with each
Unit comprising one common share, one flow-through share and one-half warrant.
Each whole warrant entitles the purchaser to acquire a common share at
45 cents for a period of 18 months. The net proceeds from the offering will be
used to pursue exploration and development of shallow gas prospects in central
Alberta.
In other news, at the Kroes Annual General Meeting held on June 19, 2006,
all six incumbent Directors were re-elected and in addition, Stewart D.
Gossen, MBA was elected a Director. Mr. Gossen has been Vice President,
Business Development of the Company since January 2004 and brings to the Board
extensive experience in the oil and gas industry.
Kroes Energy is a junior oil and gas producer and explorer participating
in the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern
Europe's fastest growing economies. It also has a Joint Venture agreement in
central Alberta. Kroes has a strong management team, with extensive
international experience. Shares trade on the TSX Venture Exchange under the
symbol KRS.
FORWARD-LOOKING STATEMENTS
This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Kroes' control, including: the impact of general economic conditions in
the areas in which the Company operates, industry conditions, changes in laws
and regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in commodity prices, foreign exchange or interest rates, stock
market volatility and obtaining required approvals of regulatory authorities.
In addition, there are risks and uncertainties associated with oil and gas
operations; therefore, Kroes' actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking estimates and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking estimates will transpire
or occur, or if any of them do so, what benefits, including the amounts of
proceeds, that Kroes will derive from that.
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