/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
TSXV ticker symbol: BEN
CALGARY, May 16, 2012 /CNW/ - Butte Energy Inc. ("Butte" or the "Company") announces that it intends to complete a non-brokered private placement of up to 28 million common shares at an issue price of $0.25 per share subject to regulatory approval.
The net proceeds of this offering will be used in the Company's on-going exploration and development activities in Central Alberta including the Company's farm-out obligations discussed below and for working capital.
In April 2012, the Company drilled the Chigwell 4-35-42-26 W4 well which is presently awaiting fracture stimulation. The Company intends to drill one additional well in Chigwell. Also in April, the Company farmed in on six sections of land in Central Alberta. Under the farm-out agreement, the Company is obligated to drill four wells at an estimated cost of $2.2 million dollars. Additional drilling in these lands is anticipated based on the results obtained.
Cautionary statements
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the proposed private placement, drilling of an additional well in Chigwell and related to the Company's farm-out obligations, including statements regarding the receipt of regulatory approvals. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that regulatory approval will not be obtained in a timely manner or at all. The statements in this news release are made as of the date of this release. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange, Inc. nor its Regulation Service Provider (as that term is defined under the policies of the TSX Venture Exchange) has in any way passed upon the merits of the Proposed Acquisition and associated transactions and has neither approved nor disapproved of the contents of this press release.
Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.
Butte Energy Inc.
Victor Redekop, Chairman
Tel: (403) 541-5310
Share this article