Kenartha
KJ5 on the Frankfurt Exchange
 
Clarification - Kenartha oil and gas limited Raising $2.2 Million for next Well Drilling of the Expansion Program in Southern Ontario - (Mar. 21, 2007)

Toronto, Ontario - Kenartha Oil & Gas Company Limited (Frankfurt Exchange: KJ5), an explorer and developer of natural gas resources, would like to clarify the contents of its previous release dated Mar. 2, 2007 due to a clerical and administrative error. The company is pleased to announce that it is in the process of raising CDN $2,200,000 for the drilling of the next 15 wells in the expansion program in southern Ontario, Canada.

The Offering consists of 400 units in the capital stock of Kenartha Oil & Gas Company Limited at a subscription price of $5,500.00 per unit. Each unit shall be comprised of one thousand (1000) flow through common voting shares and one (1) warrant having the right to a percentage (calculated as “100% / total units subscribed”) of the net profit generated from the producing wells equivalent to $5,005.00, and thereafter retain a net profit interest (“NPI") royalty (percentage calculated as “24% / total units subscribed”) in each of the drilled wells, per the next 15 well Project. The warrant at a price of $2,500.00 shall be exercisable up to forty (40) days after notification from the Company reporting the flow test results of the first six wells drilled (or for the number of wells drilled if the total is less than 6 wells due to funding), (the "Unit"). 

Flow-through shares are a Canadian Federal and Provincial tax incentive that allows the company to renounce the drilling expenditures to Canadian tax paying investors that can be applied by the investors as a deductible expense in their income tax calculations.  

Company management is confident in the Offering being fully subscribed, based on the success of the previous offering.

About Kenartha Oil and Gas Company Limited

Kenartha Oil & Gas Company Limited (Kenartha) is an oil and natural gas exploration, acquisition, development and production firm.

The Company holds interests in natural gas production facilities in southern Ontario, Canada near Canada's first oil wells. Kenartha has sales agreements with Union Gas Limited for the purchase of its natural gas production.

Kenartha is traded on the Frankfurt Exchange under the symbol “KJ5”. For further information please visit the company’s website at kenartha.com.

WARNING: The company relies upon litigation protection for "forward-looking" statements.

Information presented in this newsletter contain 'forward looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be 'forward looking statements.' Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as 'projects', 'foresee', 'expects'', 'will,' 'anticipates,' 'estimates,' 'believes,' 'understands' or that by statements indicating certain actions 'may,' 'could,' or 'might' occur.

For further information contact:

Mr. Ernest Harrison, EM, CEO
Mr. Marty Martinello, B.A., V.P.
Phone: 705-474-7282
Fax: 705-474-5491
Email: ernie@kenartha.com
  Mr. Robert Chase, B.A., CFO
Phone:416-368-9595
Fax:  416-368-6827
Email: rob@kenartha.com
 


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