HOUSTON, March 31, 2008 (PRIME NEWSWIRE) -- Rock Energy Resources, Inc. (OTCBB:RCKE), a producer engaged in the exploration, development and production of crude oil and natural gas, today announced that the company has entered into an agreement with Perm Energy Advisors Inc. for $40 million of equity financing, which will provide Rock Energy Resources, Inc. with working capital needed for the next 12 months.
"This is a big step for the company as we begin to execute our development plans for the California and Texas properties," said Rocky Emery, CEO of Rock Energy Resources, Inc.
Rock Energy Resources, Inc. plans to use the funding provided by Perm Energy Advisors Inc. to continue its operations and drilling projects in the Wilcox Trend in Colorado County, Texas, and at its Orcutt property in Santa Barbara County, California. The company also plans to pursue other strategic acquisitions to expand its reserve base and current cash flow.
Source Capital Group Inc. was the investment banker on the transaction.
About Rock Energy Resources, Inc.
Originally formed in April of 2004 as Rock Energy Partners LP, Rock Energy Resources, Inc. is an oil and gas company based in Houston, Texas, that seeks out untapped, onshore natural gas and crude oil resources using cutting-edge 3D technologies. Rock Energy Resources, Inc. currently produces and sells natural gas and crude oil from two locations: the Wilcox trend in Colorado County, Texas, and the Monterey Formation in Santa Barbara County, California.
Safe Harbor Forward-Looking Statements
Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of Rock Energy Resources, Inc., and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.