Continental private placement raises $500,000

Dallas-based junior oil company Continental Energy Corporation announced Monday that it had 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 would raise US$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, both are located in East Kalimantan.

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.(alex)