Carmen Energy Inc. Announces Closing of First Tranche of Prospectus Offering and Concurrent Private Placement

    




 CALGARY, Dec. 30, 2011 /CNW/ - Carmen Energy Inc. ("Carmen" or the "Corporation") is pleased to announce that it has completed the first tranche of its  previously announced public offering of: (i) up to 11,111,111 common  shares issued as "flow-through shares" pursuant to the Income Tax Act (Canada) ("Flow-Through Shares") at a price of $0.27 per Flow-Through Share and (ii) up to 13,043,478  units ("Units") at a price of $0.23 per Unit (the "Offering"). Each Unit will be comprised of one common share of the Corporation  (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant  a "Warrant"). The Offering is being conducted pursuant to the terms of an agency  agreement ("Agency Agreement") dated as of November 22, 2011 between the Corporation and Macquarie  Private Wealth Inc. (the "Agent"). 

 The first tranche closed with the issuance of 1,301,777 Flow-Through  Shares and 3,308,282 Units for aggregate gross proceeds of $1,112,385.   Additional closings, if they occur, shall occur at any time agreed upon  by the Corporation and the Agent provided that such closing(s) occur  prior to March 12, 2012. 

 In addition, concurrently with the first tranche closing of the  Offering, Carmen privately placed 1,604,348 Units (the "Concurrent Private Placement") for aggregate gross proceeds of $369,000. The Common Shares and  Warrants comprising the Units issued pursuant to the Concurrent Private  Placement will be subject to a statutory four month and one day hold  period. 

 About Carmen Energy Inc. 

 Carmen is based in Calgary, Alberta and a publicly traded oil and gas  exploration and production company. The focus is on exploration and  development of Western Canadian Sedimentary Basin based oil and gas  properties. The current projects are the Jumpbush properties in south  eastern Alberta, the Ferrybank properties in central Alberta, the  Sylvan Lake area properties in Southern Alberta, the Viking-Kinsella  properties in Alberta and the Hamburg properties in northern western  Alberta. 

 ON BEHALF OF THE BOARD OF DIRECTORS 

 Advisory Regarding Forward-Looking Information and Statements 

 This press release contains forward-looking statements and  forward-looking information within the meaning of applicable securities  laws. The use of any of the words "will", "expects", "believe",  "plans", "potential" and similar expressions are intended to identify  forward-looking statements or information. Specifically, this news  release contains forward looking statements relating Offering and the  Concurrent Private Placement, including regarding the occurrence of any  additional closing(s) of the Offering and Concurrent Private Placement.  Accordingly there is a risk that any additional closings of the  Offering and Concurrent Private Placement will not be completed within  the anticipated time or at all. Management has included the above  summary of assumptions and risks related to forward-looking information  provided in this press release in order to provide securityholders with  a more complete perspective on Carmen's future operations and such  information may not be appropriate for other purposes. 

 The forward-looking statements and information in this press release are  based on certain key expectations and assumptions made by Carmen.  Although Carmen believes that the expectations and assumptions on which  such forward looking statements and information are based are  reasonable, undue reliance should not be placed on the forward-looking  statements and information because Carmen can give no assurance that  they will prove to be correct. 

 The forward-looking statements and information contained in this press  release are made as of the date hereof and Carmen undertakes no  obligation 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 the 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 press  release. 

Carmen Energy Inc


CONTACT:  Mr. Brian Doherty, President, CEO and Director Contact: [e-mail]; [phone] 


    

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