CALGARY, ALBERTA--(Marketwire - July 16, 2012) - Traverse Energy Ltd. (the "Corporation") (TSX VENTURE:TVL) is pleased to announce that it has successfully closed the final tranche of its previously announced non-brokered private placement (the "Private Placement") of common shares of the Corporation ("Shares") issued on a "flow through" basis within the meaning of the Income Tax Act (Canada). The Corporation issued 327,000 Shares for gross proceeds of $219,090 in the final tranche bringing the total Shares issued in the Private Placement to 2,078,000 for total gross proceeds of $1,392,260.
The Corporation received conditional approval of the Private Placement from the TSX Venture Exchange on July 6, 2012. The Shares issued in the first tranche are subject to a hold period under applicable securities law until November 10, 2012 and the Shares issued in the final tranche are subject to a hold period under applicable securities laws until November 17, 2012.
Current insiders of the Corporation participated in the Private Placement and purchased an aggregate of 506,000 Shares, or 24.4% of the Private Placement.
The Corporation paid an aggregate finder's fee of $30,632 to two registered brokers in consideration for placing an aggregate of 762,000 Shares under the Private Placement.
The Corporation intends to use the proceeds from the Private Placement to fund a portion of its exploration drilling activities in the province of Alberta. The Corporation is drilling the second of up to 5 gross (4.5 net) wells on its Turin property in Southern Alberta. The first well has been cased as a potential oil well.
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company with a substantial land base in Alberta. The common shares of the Corporation currently are listed on the TSX Venture Exchange under the trading symbol "TVL". There are currently 44,287,911 Shares issued and outstanding.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the use of proceeds from the Private Placement. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information includes the failure to obtain final approval from the TSX Venture Exchange, availability of drilling rigs and commodity prices. Although the Corporation believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of the content of this release.