CALGARY, ALBERTA--(Marketwire - Feb. 7, 2011) -


Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase on a bought deal basis 4,820,000 common shares ("Common Shares") of Crew at a price of $20.75 per Common Share for aggregate gross proceeds of approximately $100.0 million. Crew has also granted the Underwriters an over-allotment option to purchase, on the same terms, up to an additional 723,000 Common Shares for additional gross proceeds of up to $15.0 million exercisable by the Underwriters, in whole or in part, at any time up to 30 days following closing of the offering to cover the Underwriters' over-allotments, if any. 

Proceeds of the offering will be used to initially reduce outstanding indebtedness under Crew's credit facilities, thereby freeing up additional borrowing capacity to fund a portion of Crew's ongoing capital program and for general working capital purposes. Subject to completion of the offering, the Company plans to increase its previously announced 2011 capital budget of $210 million by an additional $50 million, the majority of which capital program is directed to Crew's core oil property at Princess Alberta. Completion of the offering, along with additional available borrowing capacity under the Company's credit facilities which have been increased to $240 million, will provide Crew with additional financial flexibility to fund and accelerate its exploration and development program, as well as for potential strategic acquisitions which the Company may enter into from time to time as opportunities arise.

The Common Shares will be offered in certain provinces of Canada (except Quebec) by way of a short form prospectus. Closing is expected to occur on or about March 2, 2011 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange.

The securities offered have not been and will not be 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 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 jurisdiction in which such offer, solicitation or sale would be unlawful.

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to completion of the offering, the planned increase in Crew's 2011 capital program, the use of the net proceeds of the offering, the filing of the short form prospectus and the closing date of the offering. Although Crew believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Crew 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. The closing of the offering could be delayed if Crew is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Crew might change if the board of directors of Crew determines that it would be in the best interests of Crew to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release speak only as of its date and are expressly qualified by this cautionary statement. These forward-looking statements are based on certain key assumptions regarding, among other things, the timing of obtaining regulatory approvals. The reader is cautioned that such assumptions, although considered reasonable by Crew at the time of preparation, may prove to be incorrect.

The forward looking statements contained in this press release are made as of the date hereof and Crew undertakes no obligations 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.

Contact Information: Crew Energy Inc.
Dale O. Shwed
President and Chief Executive Officer
(403) 266-2088
Crew Energy Inc.
John G. Leach
Senior Vice President & Chief Financial Officer
(403) 266-2088