(TSX-V:CEX)
CALGARY,
May 15, 2012 /CNW/ - Contact
Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is
pleased to announce that it has issued an aggregate of 29,787,125
common shares of the Company ("Common Shares"), on the exercise of
a like number of share purchase warrants of the Company (the
"May 2010 Warrants"). The
May 2010 Warrants were issued by
Contact with a 2 year term in May
2010, with an exercise price of $0.12/share. Contact received an aggregate
of $3,574,455 in connection with this
issuance of Common Shares, the proceeds of which are expected to be
utilized in the Company's upcoming operational programs.
Steve Harding,
President and CEO commented, "Contact is pleased with the number of
warrant holders who have recognized the value within the Company
and chose to exercise. We believe we have several exciting
opportunities to invest this capital, including follow-up work on
our recently announced Kakwa Montney discovery."
In aggregate, 77% of the May
2010 Warrants were exercised over their two year term, for
total aggregate proceeds of $4,844,055. All of the May
2010 Warrants have now expired.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which
has been focused on Canadian East Coast onshore oil and gas
exploration and development. Our philosophy is to operate the
exploration and development projects in our core areas of
Stoney Creek, Hillsborough and Edgett's Landing,
New Brunswick and to participate
through overrides and carried interests in certain regional
unconventional plays in Nova
Scotia and Newfoundland. In
addition to the Atlantic Canadian properties, Contact is pursuing a
new core area in Alberta's "Deep
Basin" targeting the Montney Formation.
ADVISORY ON FORWARD-LOOKING
STATEMENTS: This press release contains certain
forward-looking information and statements within the meaning of
applicable securities laws. The use of any of the words "expect",
"continue", "estimate", "may", "will", "should", "believe",
"plans", "cautions" and similar expressions are intended to
identify forward-looking information or statements. In
particular, but without limiting the forgoing, this press release
contains statements concerning the expected use of proceeds from
the exercise of share purchase warrants, among
others.
Forward-looking statements or information are
based on a number of material factors, expectations or assumptions
of Contact which have been used to develop such statements and
information but which may prove to be incorrect. Although Contact
believes that the expectations reflected in these forward-looking
statements are reasonable, undue reliance should not be placed on
them because Contact can give no assurance that they will prove to
be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. In particular, in addition to other
factors and assumptions which may be identified herein, no
assurances can be given respecting: whether additional
drilling operations in the Deep Basin Montney project
will be successful such that further development activities in
this area is warranted; that Contact will continue to conduct its
operations in a manner consistent with past operations; results
from drilling and development activities will be consistent with
past operations; the accuracy of the estimates of Contact's reserve
volumes; the general stability of the economic and political
environment in which Contact operates; drilling results;
field production rates and decline rates; the general
continuance of current industry conditions; the timing and
cost of pipeline, storage and facility construction and expansion
and the ability of Contact to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which Contact
operates; and the ability of Contact to successfully market its oil
and natural gas products.
Further, events or circumstances may
cause actual results to differ materially from those predicted as a
result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including, without limitation: changes in commodity prices; changes
in the demand for or supply of the Company's products;
unanticipated operating results or production declines; changes in
tax or environmental laws, royalty rates or other regulatory
matters; changes in development plans of Contact or by third party
operators of Contact's properties, increased debt levels or debt
service requirements; inaccurate estimation of Contact's oil and
gas reserve and resource volumes; limited, unfavourable or a lack
of access to capital markets; increased costs; a lack of adequate
insurance coverage; the impact of competitors; and certain other
risks detailed from time-to-time in Contact's public disclosure
documents. Additional information regarding some of these
risk factors may be found under "Risk Factors" in the Company's
Management Discussion and Analysis prepared for the year ended
March 31, 2011. The
reader is cautioned not to place undue reliance on this
forward-looking information. The forward-looking statements
contained in this press release are made as of the date hereof and
Contact undertakes no obligations to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
SOURCE Contact Exploration Inc.