CALGARY, Sept. 15 /CNW/ - Result Energy is pleased to announce that it has completed an expedited non-brokered private placement of common shares, raising gross proceeds of $4,609,800 to finance exploration and development activities, and for general corporate purposes. The Placement consisted of 2,473,066 common shares issued at $0.75 per share for proceeds of $1,854,800 and 2,755,000 common shares issued on a flow-through basis at $1.00 per share for proceeds of $2,755,000. Directors, officers and management of Result participated for 13% of the Placement. The Placement was completed pursuant to a price reservation application that was filed with the TSX Venture Exchange on September 1, 2005. Finders fees totaling $112,500 were paid on a portion of the placement at 5% of gross proceeds. The securities issued will be subject to a four-month hold period from the date of closing. Following completion of this placement, Result has 38,075,513 common shares outstanding. For the flow-through portion of the placement, Result is required to incur qualifying expenditures of $2,755,000 by December 31, 2006 and will renounce this amount of Canadian Exploration Expenses to subscribers effective December 31, 2005. Operations Update ----------------- Result is currently drilling 1.0 (0.36 net) additional well at Worsley, targeting the Company's Devonian high-deliverability gas play. This well is expected to reach total depth and complete production testing prior to the end of October. Result and partners have initiated the process of constructing a new gas pipeline to tie-in the Worsley project volumes. Subject to regulatory approvals, equipment availability and weather, the Company expects gas to flow by year-end 2005. At Winfield/Pembina, in west central Alberta, Result has completed and tested its recent Viking gas discovery. This well flowed at a stabilized rate of 2.3 million cubic feet per day, with minor condensate and water, at an 18% effective reservoir drawdown. It is currently shut-in for pressure buildup analysis. The Company holds a 50% working interest before payout (BPO) and a 30% working interest after payout (APO). Based on the encouragement provided by this well, Result and partners have elected to immediately acquire an additional 5 square miles of 3-D seismic data within the Viking project area. This data is expected to lead to additional drilling locations in the fourth quarter of 2005 and through 2006. At Clear Hills in the Peace River Arch region, Result has finished drilling and is currently completing its fourth development well targeting the Charlie Lake 'A' gas pool. Negotiations are ongoing with a third party for the construction of pipeline and processing infrastructure to serve the Clear Hills field area. At this time, Result is hopeful that the Clear Hills volumes will be back on-stream prior to February 2006. Elsewhere, Result plans to commence drilling 4 (2.0 net) development wells at Dodsland, Saskatchewan, 2 (1.0 net) development wells at East Dodsland, plus up to 3 (1.5 net) exploration wells at Winfield, Alberta before year end. Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE". Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release. %SEDAR: 00012334E