Calgary, Alberta CANADA, March 08, 2011 - Passport Energy Ltd. (PPO - CNSX), announces that it has closed its second tranche of a non-brokered private placement on 6,559,000 units for gross proceeds of $1,639,750.
On January 6, 2011, the Company announced the non-brokered private placement for a maximum of 20,000,000 units at a price of
.25 per unit, for total gross proceeds of up to $5,000,000. Each unit is comprised of one (1) common share and one (1) share purchase warrant. Each warrant entitles the holder to purchase one (1) additional common share of the Company for a period of eighteen months at a price of
.35 per share. The private placement will be subject to regulatory approval. In addition, all securities will be subject to a hold period of four (4) months from the date they are issued. The private placement will be subject to a finder's fee of 8% cash fee and 8% broker warrants to persons who introduce subscribers under the offering.
Following this closing the Company has outstanding 63,805,110 Common Shares and 27,349,220 Share Purchase Warrants (including Broker's Warrants) exercisable at prices between
.05 and
.35. The Company has no debt.
It is anticipated that the funds from the private placement will be used for the Company's recently announced participation in the Hardy Bakken Field in south-eastern Saskatchewan and for exploration on its Alberta Basin properties in Montana (Sweetgrass Arch). Management anticipates the funds to be used as follows:
* $2,600,000 drilling of two wells in the Williston Basin in the Hardy Bakken Field in south-eastern Saskatchewan
* $500,000 drilling of two wells in the SweetGrass Arch of Montana
* $1,500,000 for future participation in Saskatchewan properties, additional wells in Montana, seismic and field operations, and future land acquisitions
* $400,000 for general and administrative purposes, including a marketing program within North America and Europe.
Frank Port, President and C.E.O of Passport Energy Ltd said, "We are moving cautiously in closing our finances in tranches, as well as finalizing our negotiations on the Hardy prospect in Saskatchewan. Passport currently has in excess of $4.5 million banked for our potential commitment to Hardy and the drilling of two wells in Montana. We are hopeful to finalize the definitive agreement shortly so drilling can commence prior to spring break up. In the mean time, we are reviewing a number of prospective projects in Canada and internationally."
The Company is a junior natural resource exploration company focused on the acquisition, exploration, and development of economically viable natural resources, with a focus on Bakken oil and gas projects. The Company currently owns 60% of 43,584 gross acres of oil and gas leases in "The SweetGrass Arch" Prospect located in Toole and Pondera Counties, Montana. The SweetGrass Arch prospect has significant gas potential as well as Bakken oil potential. The Company also has signed a letter of intent allowing it to earn a 25% interest on up to two wells and associated acreage in the Hardy Bakken Field in south-eastern Saskatchewan. The Company continues to seek additional oil and gas properties.
The Company Trades on the CNSX under the trading symbol "PPO".
The CNSX does not accept responsibility for the adequacy or accuracy of this news release.
For more information, please refer to the Company's engineering report available on SEDAR (
www.sedar.com).
For further information contact:
Frank Port
President, Chief Executive Officer, and Director
Tel: 604-805-9999
E-mail: fport@passportenergy.com
Website:
www.passportenergy.com