Lochaird Energy Inc. Announces Flow-Through Financing
Calgary, Alberta CANADA, November 27, 2008 /FSC/ - Lochaird Energy Inc. (LEN - TSX Venture), ("Lochaird" or the "Corporation") has entered into an agreement with Northern Securities Inc. ("Northern" or the "Agent"), whereby Northern is offering to raise, on a best efforts basis, up to $2,000,000 (the "Offering").
The Offering will consist of the issuance of up to 8,000,000 flow-through units (the "Units") of the Corporation at a price of $0.25 per Unit via a Short Form Offering Document. Each Unit will consist of one common share of the Corporation (the "Common Share") issued on a "flow-through" basis and one warrant (the "Warrant"). Each Warrant will entitle the holder to acquire a Common Share at an exercise price of $0.30 for a period of twelve months from issuance.
Northern will receive a 10% cash commission on the gross proceeds raised in connection with the Offering. It will also, on completion of the Offering, receive broker's warrants allowing Northern to purchase that number of Agent's units (the "Agent's Unit") equal to 10% of the number of Units sold under the Offering, at an exercise price of $0.25 per Agent's Unit, for a period of 12 months from issuance of the broker's warrants. The Agent's Unit is comprised of one Common Share and one Common Share purchase warrant (the "Agent's Warrant"). Each Agent's Warrant shall entitle the holder to purchase one Common Share at a price of $0.30 for a period of 12 months from issuance from closing.
The Corporation has agreed to pay Northern a non-refundable work fee of $20,000, one half of which has been paid with the balance to be paid at closing.
Funds raised from the financing will be used for exploration on Lochaird's 12 sections of land in two core areas in Manitoba. In the Tilston area, Lochaird intends to drill a second exploratory well to test a new zone and confirm the size of the Bakken and Mission Canyon zones identified in the first well. The second area at Waskada will have 3D seismic shot targeting Bakken and Mission Canyon zones as part of a previously announced farm-in agreement. Wells on these lands have previously produced 40 MSTB of oil from the Mission Canyon and the seismic will identify the optimum location for horizontal wells to exploit this proven zone and the Bakken zone.
The Offering is subject to the approval of the TSX Venture Exchange.
The TSX Venture Exchange neither approved nor disapproved the contents of this press release.
For further information please contact:
Grant S. Blakely
President and Chief Executive Officer
Lochaird Energy Inc.
Phone (403) 514-0955
Fax (403) 514-0956
Email: blakelyg@telusplanet.net
Advisory:
Certain information regarding the Corporation including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
Source: Lochaird Energy Inc. (LEI.P - TSX-V)
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