EXHIBIT 99.1
On August 4, 2000, the Registrant issued the following press release:
"PYR ENERGY RECEIVES $9.5 MILLION IN EQUITY FINANCING
Funding Primarily for Exploitation and Development
of Deep Natural Gas Discovery
DENVER -- PYR Energy Corporation (AMEX:PYR) today announced receipt of an
aggregate $9,450,000 of equity financing through the sale of 2,700,000 shares of
the Company's common stock and 3-year warrants to purchase an additional 540,000
shares of the Company's Common Stock at an exercise price of $4.80. The warrants
are subject to certain reductions in price depending on timeliness of an
effective Securities and Exchange Commission registration. After fees and
expenses related to the funding, PYR Energy expects to net approximately
$9,000,000.
AG Edwards & Sons, Inc. served as financial advisor and placement agent in
this transaction. Investors include principals of and funds managed by San
Francisco-based RS Investment Management; various funds managed by Santa
Cruz-based Westcliff Capital Management; the Galaxy Small Company Equity Fund
managed by Boston-based Fleet Financial Advisors and funds managed by San
Francisco-based Peninsula Capital Management.
The securities sold in the private placement have not been registered under
the Securities Act of 1933 and may not be offered or sold absent registration or
an applicable exemption from the registration requirements of the Securities Act
of 1933. The Company intends to promptly file a registration statement covering
the possible resale of the shares and the shares underlying the warrants.
The funding will provide the Company with necessary capital for
exploitation and development costs related to its East Lost Hills deep natural
gas discovery in the San Joaquin Basin of California. PYR owns a 10.575% working
interest at the East Lost Hills project including the recently completed ELH #1
well operated by Berkley Petroleum Corp. (TSE:BKP). In addition, the Company
expects to use a portion of the capital received to fund additional exploration
opportunities in the San Joaquin Basin and in select areas of the Rocky
Mountains as well as for general and administrative purposes.
OPERATIONS UPDATE:
At the Berkley ELH #1 well, operations are underway to build wellsite
facilities and a transportation pipeline in order to connect this well for
production. Actual production from this well is anticipated to begin by December
1, 2000. PYR is also a 10.575% working interest participant in the ELH #2 and
ELH #3 wells currently drilling at East Lost Hills.
The Berkley ELH #2 step-out well commenced drilling on July 11, 2000 and is
currently drilling at a depth of approximately 12,200 feet. Total depth for the
ELH #2 is anticipated to be 17,300 feet.
The Berkley ELH #3 exploratory well commenced drilling on June 19, 2000
and, after finalizing an intermediate casing run, is currently drilling forward
at a depth of 9,100 feet. The ELH #3 well is designed to test a geologically
separate structure than the structure encountered by the drilling activities
thus far at East Lost Hills. The projected total depth of the ELH #3 well is
approximately 18,000 feet.
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Denver based PYR Energy is a natural gas and oil exploration company with
activities focused in the San Joaquin Basin of California and in select areas of
the Rocky Mountain region. Additional information about PYR Energy Corporation
can be accessed via the Company's web site at www.pyrenergy.com.
# # #
This release contains forward-looking statements regarding PYR Energy
Corporation's future plans and expected performance based on assumptions the
Company believes to be reasonable. A number of risks and uncertainties could
cause actual results to differ materially from these statements, including,
without limitation, the success rate of exploration efforts and the timeliness
of development activities, fluctuations in oil and gas prices, and other risk
factors described from time to time in the Company's reports filed with the SEC.
In addition, the Company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other factors beyond
the Company's control"
