First Calgary Petroleums Ltd. has entered into an agreement with a syndicate of underwriters, led by UBS Securities Canada Inc. and including Canaccord Capital Corporation (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 30,000,000 common shares of FCP (the "Common Shares") at a price of CDN$5.08 per Common Share, resulting in gross proceeds of approximately CDN$152.4 million.
The transaction is subject to certain conditions including normal regulatory approvals. The Common Shares will be offered in certain provinces in Canada by way of a short form prospectus and on a private placement basis elsewhere including the United Kingdom. Closing is anticipated to occur on or about April 17, 2007.
Net proceeds of the offering will be used to fund the Company's 2007 capital budget which is directed toward implementing its independent exploration and appraisal strategy in respect of its Algerian assets and for working capital purposes.
