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Press release from Marketwire

Crocotta Energy Inc. Announces $25 Million Bought Deal Financing

Thursday, February 03, 2011

Crocotta Energy Inc. Announces $25 Million Bought Deal Financing08:10 EST Thursday, February 03, 2011CALGARY, ALBERTA--(Marketwire - Feb. 3, 2011) -CROCOTTA ENERGY INC. (TSX:CTA) ("Crocotta" or the "Company") is pleased to announce that it has entered into a letter agreement with a syndicate of underwriters co-led by GMP Securities L.P. and Canaccord Genuity Corp. and including Acumen Capital Finance Partners Limited, Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., Raymond James Ltd., National Bank Financial Inc. and Casimir Capital L.P. (collectively, the "Underwriters") to issue 10,900,000 common shares ("Common Shares") of Crocotta on a "bought deal" basis by way of a short form prospectus at a price of $2.30 per Common Share ("Offer Price") for gross proceeds of $25,070,000 (the "Offering").In addition, Crocotta has granted an over-allotment option to the Underwriters, exercisable at the option of the Underwriters at any time during on, or the 30 days following the closing of the Offering, to acquire up to an additional 1,635,000 Common Shares at the Offer Price for further gross proceeds of up to $3,760,500.Proceeds from the Offering will be used initially to partially repay debt and then to fund Crocotta's Edson Bluesky and Dawson Montney developments and other projects and for general corporate purposes. Completion of the Offering is subject to receipt of all necessary regulatory approvals. The Offering is expected to close on or about February 23, 2011.The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated dates for the closing of the financing, the Company's potential exploration and development opportunities, the anticipated impact of the financing on the Company's capital budget. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Crocotta, including: (i) with respect to the anticipated closing date of the financing, expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the financing, and (ii) with respect to the remaining forward-looking statements, expectations and assumptions concerning the success of future drilling and development activities.Although Crocotta believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Crocotta 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the financing, risks associated with the oil and natural gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations changes to existing laws and regulations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Crocotta's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this document are made as of the date hereof and Crocotta 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.FOR FURTHER INFORMATION PLEASE CONTACT: Rob ZakreskyCrocotta Energy Inc.President and Chief Executive Officer(403) 538-3736ORNolan ChicoineCrocotta Energy Inc.Vice President, Finance and Chief Financial Officer(403) 538-3738OR700, 639 -5th Ave SWCrocotta Energy Inc.Calgary, Alberta T2P 0M9www.crocotta.caThe TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.