CALGARY, Nov. 24 /CNW/ - Galleon Energy Inc. ("Galleon" or the
"Corporation") is pleased to announce that the Toronto Stock Exchange ("TSX")
has accepted Galleon's Notice of Intention to commence a Normal Course Issuer
Bid (the "Bid") to purchase for cancellation, from time to time, as Galleon
considers advisable, up to a maximum of 5,610,908 Class A Shares of the
Corporation. The maximum number of Class A Shares to be purchased pursuant to
the Bid represents approximately 10% of the issued and outstanding Class A
Shares, which are not held by insiders of the Corporation, on the date hereof.
At the date hereof, to the Corporation's knowledge, there are 73,450,493 Class
A Shares of the Corporation issued and outstanding, of which 17,341,408 Class
A Shares are held by senior officers or directors of Galleon or any persons or
companies who beneficially own, or exercise control or direction over, more
than 10% of the issued and outstanding Class A Shares. Purchases of Class A
Shares will be made on the open market through the facilities of the TSX. The
price which Galleon will pay for any Class A Shares purchased by it will be
the prevailing market price of the Class A Shares on the TSX at the time of
such purchase. The actual number of Class A Shares that may be purchased for
cancellation and the timing of any such purchases will be determined by
Galleon, subject to a maximum daily purchase limitation of 96,815 Class A
Shares which equates to 25% of Galleon's average daily trading volume for the
six months prior to October 31, 2008, except that until March 31, 2009, the
daily maximum limitation shall be 50% of such average daily trading volume or
193,630 Class A Shares in accordance with discretionary relief granted by the
TSX. The average daily trading volume for the six months prior to October 31,
2008 was 387,262.
The Bid will commence on November 26, 2008 and will terminate on November
25, 2009 or such earlier time as the Bid is completed or terminated at the
option of Galleon. FirstEnergy Capital Corp. has agreed to act on the
Corporation's behalf to make purchases of Class A Shares pursuant to the Bid.
Management of Galleon believes that, from time to time, the market price
of its Class A Shares may not fully reflect the underlying value of the Class
A Shares and that at such times the purchase of Class A Shares would be in the
best interests of Galleon. Such purchases will increase the proportionate
interest of, and may be advantageous to, all remaining shareholders. In
addition, the purchases by Galleon may increase liquidity to shareholders
wishing to dispose of their Class A Shares.
Galleon has approximately 73.45 million Class A shares and 922,500 Class
B shares issued and outstanding which trade on the TSX under the symbols
"GO.A" and "GO.B".
