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Storm Cat Energy Corporation Announces C$ 23.1 Million Private Placement Of Units and Flow-Through Common Shares
Tuesday, September 19, 2006
CALGARY and DENVER - September 19, 2006 –
Storm Cat Energy Corporation (Amex: SCU
- News;
TSX: SME
- News)
today announced that it has entered into agreements in principal with a single
investment group based in Ontario, Canada, pursuant to which this investment
group will, acting as portfolio manager for fully-managed accounts, purchase
7,594,937 units (C$12,000,000.46) and 6,172,839 flow-through common shares
(C$11,111,110.20) (the “Offering”). Each unit, priced at C$1.58 per unit,
will comprise one common share and approximately 0.28 of a common share
purchase warrant (2,126,582 warrants). Each whole common share purchase
warrant will be exercisable into one common share at a price of C$1.90 per
share for a period of 18 months from closing. Each flow-through common share
is priced at C$1.80 per share. In connection with the Offering, the Company
will pay a cash commission equal to 6% of the aggregate gross offering amount.
The completion of the Offering is subject to the acceptance of the Toronto Stock Exchange and the American Stock Exchange.
The net proceeds from the sale of the units will be used to pay down mezzanine debt recently incurred to fund
its acquisition in the previously announced acquisition in the Powder River Basin and to fund the Company’s
exploration and development program of the acquired properties in the Powder River Basin, Wyoming, and for
general corporate purposes. The net proceeds from the sale of flow-through common shares will be used to
incur exploration and development expenses which qualify as CEE under the Income Tax Act (Canada).
The securities to be issued under the Offering have not been registered under the United States Securities
Act of 1933 or any state securities laws, and unless so registered may not be offered or sold in the United
States, except pursuant to an exemption from, or in a transaction subject to, the registration requirements
of the Securities Act of 1933 and applicable state securities laws. This press release is issued pursuant
to Rule 135(c) of the Securities Act of 1933, and does not constitute an offer to sell, or the solicitation
of an offer to buy, nor shall there be any sale of the common shares or warrants in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
About Storm Cat Energy Corporation
Storm Cat Energy is an independent oil and gas company focused
on the pursuit, exploration and development of large unconventional gas reserves from fractured shales, coal beds
and tight sand formations. The Company has producing properties in Wyoming's Powder River Basin, exploration and
development acreage in Canada, Arkansas and Alaska. The Company's shares trade on the American Stock Exchange
under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Storm Cat Energy Corporation
J. Scott Zimmerman
President and Chief Executive Officer
Company Contact:
Scott Zimmerman, President and Chief Executive Officer
Paul Wiesner, Chief Financial Officer
Phone: 87-STORMCAT
www.stormcatenergy.com
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTED RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS NEWS RELEASE.
Source:
Storm Cat Energy Corporation
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