DALLAS, April 4, 2005 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that it has entered into a private placement agreement with a Hong Kong-based investor who has subscribed to purchase 3,333,334 units of the company's securities at a price of $0.15 per unit. Each unit consists of one common share plus one non-transferable share purchase warrant to purchase additional shares at a fixed exercise price of $0.50 for a term of two years.
The private placement will raise $500,000 working capital for the Company, most of which will be devoted to initiating the upcoming drilling programs on Continental's Bangkudulis and Bengara-II blocks. Continental will pay an arms length finder who arranged the placement a total of $50,000 in cash and $25,000 in the form of 166,667 units of the placement.
In accordance with securities regulations the units of the placement are subject to a one-year hold period before they may be traded on the market.
About Continental Energy Corporation:
Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com .
No securities regulatory authority has either approved or disapproved the contents of this news release. Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the US Securities and Exchange Commission.