* DJ Iteration Energy Closes 39.1M Shr Offer

(MORE TO FOLLOW) Dow Jones Newswires (201-938-5400)

May 06, 2009 08:57 ET (12:57 GMT)

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Iteration Energy announces closing of common share financing and exercise of over-allotment option, and provides credit facility update

8:56 AM ET, May 6, 2009

CALGARY, May 6, 2009 (Canada NewsWire via COMTEX) --


/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES./

CALGARY, May 6 /CNW/ - Iteration Energy Ltd. (TSX-ITX) ("Iteration" or the "Company") announced today that it has closed the previously announced bought deal financing of 39,100,000 common shares (the "Offering"). The Offering was led by Cormark Securities Inc. and included FirstEnergy Capital Corp., Peters & Co. Limited, CIBC World Markets Inc., Scotia Capital Inc. and Wellington West Capital Markets Inc. (collectively, the "Underwriters"). The Underwriters have exercised the full over-allotment option to purchase an additional 5,865,000 common shares at $1.28 per common share for additional gross proceeds of approximately $7.5 million. Gross proceeds from the Offering and the exercise of the over-allotment option total approximately $57.5 million

Iteration intends to initially use the net proceeds from the Offering to reduce indebtedness under its current credit facilities, including the repayment, in full, of the $25 million supplemental facility.

Credit Facility Update

Iteration has successfully extended the maturity of its existing credit facilities from April 30, 2009 to May 29, 2009. The Company is negotiating new credit facilities and has received formal credit commitments from a syndicate of four lenders to provide the Company with a new $265 million credit facility consisting of a $252.5 million revolving facility and a $12.5 million operating line. The credit facility includes customary closing conditions, including execution of a definitive credit agreement, which is expected to be completed by mid May 2009. This replacement credit facility is being provided by Canadian Imperial Bank of Commerce as Co-Lead and Administrative Agent, The Bank of Nova Scotia as Co-lead and Syndication Agent, BMO Capital Markets as Documentation Agent and Alberta Treasury Branch. As at April 27, 2009, the Corporation had an aggregate amount of approximately $288 million outstanding under the credit facilities. Following application of the proceeds from the equity offering and over-allotment option, as contemplated above, the Company's net debt is estimated to be approximately $235 - $240 million and is expected to be approximately $230 million or less by June 30, 2009.

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.

ADVISORY: This press release contains forward-looking statements, including statements concerning completion of the offering, successful negotiation of replacement credit facilities the anticipated use of the net proceeds of the offering, and future debt levels. Although Iteration believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Iteration 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 intended use of the net proceeds of the offering by Iteration might change if the board of directors of Iteration determines that it would be in the best interests of Iteration to deploy the proceeds for some other purpose. There can be no assurance that the newly negotiated credit facility will be finalized or, if finalized, on terms satisfactory to the Company or on terms contemplated in the press release. The forward-looking statements contained in this press release are based on the Company's current beliefs as well as assumptions made by, and information currently available to, the Company including future debt levels which are based assumptions for commodity prices, capital expenditures and funds from operations. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. The forward looking statements contained in this press release are made as of the date hereof and Iteration 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.

The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release.

%SEDAR: 00002576E

SOURCE: Iteration Energy Ltd.

Iteration Energy Ltd., Brian Illing, President & CEO; or Peter Scott, Vice
President, Finance & CFO, (403) 261-6883

Copyright (C) 2009 CNW Group. All rights reserved.

The Caisse de dépôt et placement du Québec acquires common shares of Iteration Energy Ltd.

4:36 PM ET, May 6, 2009

MONTREAL, May 6, 2009 (Canada NewsWire via COMTEX) -- The Caisse de dépôt et placement du Québec (the "Caisse") announces that it has acquired, via a bought deal by way of a short form prospectus, 12,000,000 common shares of Iteration Energy Ltd. (

Before the acquisition of the common shares, the Caisse held 20,861,552 common shares of Iteration Energy or 12.57% of all of the issued shares of that class. Following this transaction, the number of common shares of Iteration Energy held by the Caisse is 32,861,552 or 15.57% of such shares outstanding.

This transaction was made for investment purposes and the Caisse could increase or decrease its investments in Iteration Energy, depending on market conditions or any other relevant factor.

SOURCE: CAISSE DE DEPOT ET PLACEMENT DU QUEBEC

Maxime Chagnon, Caisse de dépôt et placement du Québec, (514) 847-5493

Copyright (C) 2009 CNW Group. All rights reserved.