Petro Vista Energy Corp.
TSX VENTURE : PTV

Petro Vista Energy Corp.
Cantrell Capital Corp.
TSX VENTURE : CLJ.H

October 06, 2009 09:47 ET

Petro Vista and Cantrell Announce Financing and Property Farm Outs

SAN CLEMENTE, CALIFORNIA and VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) - Petro Vista Energy Corp. (TSX VENTURE:PTV) ("Petro Vista") and Cantrell Capital Corp. (TSX VENTURE:CLJ.H) ("Cantrell") announce that they have entered into a binding agreement to complete the following transactions, subject to all necessary approvals.

Private Placement

Cantrell has agreed to purchase, by way of a non-brokered private placement, 25 million units of Petro Vista at a price of C$0.20 each for gross proceeds of C$5 million. Each unit will consist of one common share and one share purchase warrant. Each warrant will be exercisable by the holder to purchase one additional common share of Petro Vista for a period of two years at a price of C$0.30 per share.

Petro Vista has agreed to grant to Cantrell, on the closing of the private placement, the right to participate in all future equity financings that are completed by Petro Vista for as long as Cantrell beneficially owns at least 10% of the issued common shares of Petro Vista.

The private placement is expected to close on or before October 9, 2009, subject to acceptance by the TSX Venture Exchange and any receipt of any required approval of the shareholders of Petro Vista.

The proceeds of the financing will be used by Petro Vista to fund its on-going operations costs in Colombia and Brazil and for future property acquisitions.

Petro Vista has agreed to pay a finders' fee equal to 6% of the value of the Units issued in the private placement, payable in cash, and 6% of the number of Units issued in the private placement, payable in Units, subject to the prior approval of the TSX Venture Exchange.

Morichito Block

Cantrell has agreed to farm into one-half of Petro Vista's 50% participating interest in the Morichito Block located in the Llanos basin in Colombia which is held through Petro Vista's wholly-owned subsidiary Petropuli Ltda.

In consideration for the farm in, Cantrell has agreed to fund 100% of Petropuli's participating interest costs of drilling and completion of Morichito #5 well in the Morichito Block up to a maximum of US$2.5 million, following which any additional costs will be shared based on each party's participating interest.

The completion of the farm-out transaction is subject to the closing of the private placement and the receipt of all necessary approvals and consents, including approval to the assignment by the Agencia Nacional do Hidrocarburos, the consent of all parties to the inclusion of Cantrell as a party to the Morichito Joint Operating Agreement and the acceptance of the transaction by the TSX Venture Exchange.

Block 5

Cantrell has agreed to farm into one-half of Petropuli's 50% participating interest in the Block SSJN-5 located in the Upper Magdalena basin in Colombia ("Block 5") and held through Petro Vista's wholly-owned subsidiary Petropuli Ltda.

In consideration for the farm in, Cantrell has agreed to fund 100% of Petropuli's participating interest share of the costs of completing the Phase 1 mandatory and discretionary 3D seismic program obligations on Block 5.

The completion of the farm-out transaction is subject to the closing of the private placement and the receipt of all necessary approvals and consents, including approval to the assignment by the Agencia Nacional do Hidrocarburos, the consent of all parties to the inclusion of Cantrell as a party to the Block 5 Joint Operating Agreement and the acceptance of the transaction by the TSX Venture Exchange.

Petropuli has also granted Cantrell an option to purchase Petropuli's remaining 25% participating interest in Block 5 for US$3 million. That amount is payable, at PTV's sole election, in either cash or common shares of Cantrell at the 30 day weighted average closing price prior to the date the option is exercised. Cantrell may exercise the option by providing a written notice of exercise to PTV within 60 days of Cantrell receiving a copy of the final report of the 3D seismic program on Block SSJN-5.

Cantrell has granted to Petro Vista an option to purchase common shares in the capital of Cantrell having an aggregate value of US$3 million, with the price per share being 20% higher than the 30 day weighted average closing price immediately prior to date on which Cantrell exercises its option to acquire the remaining 25% participating interest. Petro Vista may exercise the option at any time, in whole or in part, within the period of three years from the date the parties enter into the definitive agreement to sell the initial 25% participating interest in Block 5. The right to exercise the option is conditional upon the receipt of an independent third party reserve report stating that gross proven and probable reserves of Block 5 exceeds 50 million barrels of oil or oil equivalent.

Read Taylor, the President and CEO of Petro Vista, states: "This partnership with Cantrell provides Petro Vista the ability to acquire interest in producing properties with upside potential that we have already identified and high-graded. This will enable us to generate cash flow and build reserves. The farm outs of Morichito and Block 5 allow us to reduce our overall capital costs while maintaining significant exposure to the drilling opportunities and exploration success we believe both blocks hold."

About Petro Vista Energy

Headquartered in San Clemente, California, USA, Petro Vista Energy Corp., is an independent exploration company engaged in the acquisition, exploration and development of oil and natural gas properties located in South America. The Company has exploration, development and production rights to over 3,230,936 gross acres (930,629 net acres) in Colombia and Brazil. Petro Vista's website is www.pvecorp.com.

About Cantrell

Cantrell has previously entered into agreements to acquire oil and gas properties in Colombia from Imore S.A. and raise equity capital of $45 million. This placement into Petro Vista and farm-in rights expands the number of properties that Cantrell will have exposure to in its goal to become a major oil and gas producer.

ON BEHALF OF PETRO VISTA ENERGY CORP.

Read B. Taylor, President and CEO

ON BEHALF OF CANTRELL CAPITAL CORP.

Gord Keep, CFO and Secretary

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Petro Vista. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, financing risks, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Petro Vista does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information