PetroReal Closed Private Placement
PetroReal Energy Inc. has completed its previously announced private placement. The Corporation closed the private placement in two tranches, issuing 1,562,500 units of the Corporation (the "Units") on September 23, 2008 and 430,000 Units on October 1, 2008 at a price of $0.16 per Unit for aggregate proceeds of $318,800.
Each Unit consists of one common share in the capital of the Corporation (a "Common Share") and one-half of one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase a Common Share at an exercise price of $0.30 at the option of the holder at any time until the second anniversary of its issue date.
The Corporation will have the option to force conversion of the Warrants if the Common Shares trade over $0.50 for more than 20 consecutive trading days. The proceeds are being used to pay the Energy Resources Conservation Board (ERCB) a deposit in connection with the Corporation's purchase of certain assets from Milestone Exploration Inc. and for general working capital purposes.