WILLISTON, N.D., May 08, 2008 (BUSINESS WIRE) --
WesternStandard Energy Corp., (OTCBB:WSEG), an oil and gas explorationcompany, is pleased to announce it has signed a Stock IssuanceAgreement with European institutional investor Infinity EnergyInvestments for a total of $15 million in equity investment, which willbe used to finance the Company's ongoing exploration and productionstrategies and for general working capital purposes.
Theagreement calls for the investment funds to be paid in increments of$250,000 within 5 days from when the Company requests funding. Thisallows the Company to benefit from equity investment, rather thantaking on debt, minimizing the immediate dilution effect that a largeinvestment would bring, whilst allowing the Company to grow and delivervalue to investors and shareholders in stages.
"This financinghelps us to further secure the development of our current Lodgepolereef prospects in North Dakota and if we are able to prove commercialquantities, to fund completion operations of the Federal 1-19 discoverywell in Valley County, Montana" stated Dan Bauer, President and CEO ofWestern Standard Energy. "The timing of this agreement is excellent forus given that the consensus from recently released reports show longterm oil price estimates to remain around the $100 per barrel point,allowing for excellent potential profit margins from areas such as theBakken formation in Montana and North Dakota, if we can provecommercial quantities of oil or gas there"
The EnergyDepartment's Energy Information Administration predicted oil priceswill average $110 a barrel this year, up $9 from last month's forecast,that news is in addition to a recent report released by Goldman Sachs,"Goldman now sees average selling prices of $95 a barrel for 2008, $105a barrel for 2009 and $110 a barrel for 2010." The high end of itsrange is now $135 a barrel -- but Goldman hinted that prices could beheaded even higher. "As the lack of supply growth and price-insulatednon-OECD demand suggest a future rebound in U.S. gross domestic productgrowth or a major oil supply disruption could lead to $150-$200 abarrel oil prices."
The securities offered have not beenregistered under the Securities Act of 1933 and may not be offered orsold in the United States absent a registration or an applicableexemption from the registration requirements.
About Western Standard Energy Corp.
WesternStandard Energy Corp. is a publicly traded independent oil and gasexploration company. Western Standard aims to secure and develop aportfolio of oil and gas properties throughout the Central and WesternUnited States of America. Western Standard Energy Corp. is a publiclytraded company and trades on the OTC BB under the ticker symbol: WSEG.Shareholders are invited to contact corporate communications toll freeat (888) 956-7843 for further information.
Western Standard Energy Corp.
Dan Bauer, President
Forward-Looking Statements
Statementsin this news release that are not historical facts are forward-lookingstatements that are subject to risks and uncertainties. Forward-lookingstatements in this news release include that Western Standard EnergyCorp, ('Company') will receive $15 million in funding through a stockissuance agreement; that any investment funds received will be used tofinance the Company's ongoing exploration and production strategies orfor general working capital purposes; that the Company will take ondebt; that the investment will minimize any dilution effect that anyinvestment would bring; that the Company will grow and deliver value toinvestors and shareholders; that the Company will further secure thedevelopment of its current Lodgepole reef prospects in North Dakota;that the Company will be able to fund completion operations of theFederal 1-19 discovery well in Valley County, Montana; or that we willbe able to prove commercial quantities of oil or gas. It is importantto note that actual outcomes and the Company's actual results coulddiffer materially from those in such forward-looking statements.Factors that could cause actual results to differ materially includethe uncertainty of the requirements demanded by environmental agencies,the Company's ability to raise financing for operations, breach byparties with whom we have contracted, inability to maintain qualifiedemployees or consultants, competition for equipment, inability toobtain drilling permits, potential delays or obstacles in drillingoperations and interpreting data, and the likelihood that no commercialquantities of gas are found or recoverable. Readers should also referto the risk disclosures outlined in the Company's quarterly reports onForm 10-QSB, annual reports on Form 10-KSB and the Company's otherdisclosure documents filed from time-to-time with the Securities andExchange Commission available at www.sec.gov.
Cautionary Note to U.S. Investors
TheUnited States Securities and Exchange Commission ("SEC") permits oiland gas companies, in their filings with the SEC, to disclose onlyproved reserves that a company has demonstrated by actual production orconclusive formation tests to be economically and legally producibleunder existing economic and operating conditions. We use certain termsin this document that SEC's guidelines may prohibit us from includingin filings with the SEC. U.S. investors are urged to consider closelythe disclosure in our annual report on Form 10-KSB and quarterlyreports on Form 10-QSB available from us or the SEC.
SOURCE: Western Standard Energy Corp.
Western Standard Energy Corp. Investor Relations: Dan Bauer, 1-888-956-7843 ir@western-standard.com www.western-standard.com
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