Press Release Source: Contact Exploration Inc.
Contact Exploration Inc.: Private Placement Financing
Friday February 3, 4:00 pm ET
CALGARY, ALBERTA--(CCNMatthews - Feb. 3, 2006) - Contact Exploration Inc. (TSX VENTURE:CEX - News) announces that it intends to proceed with a $4,000,000 Private Placement of securities (the "Securities") comprising either:
ADVERTISEMENT
1. Flow through common shares at a price of $0.80 per share; or
2. Units ("Units") consisting of one (1) common share and one half (1/2) purchase warrant at a price of $0.80 per Unit. Each whole purchase warrant will entitle the holder to purchase one common share at an exercise price of $1.20 exercisable for a period of one year from the date of issue.
The price of the Securities was determined by the Company. In connection with the private placement, certain registered dealers may be paid a cash commission representing 6% of the aggregate subscription funds arranged through them. This non-brokered private placement is subject to regulatory approval including further filings with the TSX Venture Exchange. The private placement is scheduled to close on or before February 16, 2006.
Contact intends to use the proceeds of the financing to fund further exploitation of the Stoney Creek field in New Brunswick announced Oct. 10, 2005, and to carry out further exploration activity on its other Canadian East Coast onshore oil and gas properties.
Terry Brown, President of Contact, states, "We are extremely excited about the opportunity to further develop this historic field. The 3-D seismic program which we recently completed and interpreted has suggested a number of new targets yet tested with any drilling activity in the past. This financing will provide us ample funding to test some of these new zones with a couple of additional horizontal wells. We have always believed that by implementing modern technology in this development prospect we can extract incremental oil and gas from the Stoney Creek Field which produced from 1909-1991."
Contact is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact has interests in approximately 2.3 million acres onshore Nova Scotia. In addition, Contact has interests in approximately 160,000 acres onshore West Newfoundland and 62,000 acres onshore New Brunswick.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
David Bajwa
Contact Exploration Inc.
Investor Relations
(604) 642-0214
dbajwa@contactexp.com
Terry Brown
Contact Exploration Inc.
President
(403) 234-8663
(403) 237-5816 (FAX)
tbrown@contactexp.com
www.contactexp.com
Source: Contact Exploration Inc.v
